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- What would Sir John do? How to use Templeton’s 16 rules
Plus: Vanguard comes to defense of the 65/95 portfolio as it forecasts stock market returns for the next decade
Latest Stock Market News - Yahoo Finance - Stock Market
If you want to save for retirement or a major purchase, such as a house, investing in the stock market is a way to put your money to work. While there's always some risk involved in any investment, with careful choices and wise planning you can earn more from your money than you would if you simply deposited it into a savings account. A diversified portfolio with a broad mix of assets can keep you on top, even during volatile periods, such as the coronavirus market.  X Trustworthy Source Website maintained by the Securities and Exchange Commision’s Office of Investor Education and Advocacy providing free resources about investing. Go to source
Stock Market Definition - Investopedia
67. Begin with a prayer: Sir John’s use of prayer to begin meetings was an act of mindfulness and focus. Investors and executives today are better grasping the benefits of thought control, mindfulness, and meditation in their daily routines. Sir John said, “If you fill your mind to capacity with thoughts that you think are good and productive, you won’t have room for the bad ones.”
4Ways to Invest in the Stock Market - wikiHow
65. Don’t panic: Selling your portfolio amounts to market timing, and if you are thinking of selling following a share price panic then you have already proven that you are not a good market timer. Remember Rule No. 9. Focus on the long-term and try to become a buyer. During the 6987 stock-market crash Sir John was elated, claiming his purchases would make their returns “for years to come.”
What would Sir John do? How to use Templeton’s 16 rules
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69. An investor who has all the answers doesn’t even understand all the questions: I am always suspicious of investors who offer certainty to every single investment question, as I feel it harms their credibility. In my experience, seasoned and successful investors are intellectually humble and have no problem admitting that some answers cannot be known.
7. Invest — don’t trade or speculate: Trading leads to unforced errors. First, traders deprive themselves of the market’s greatest gift: compound interest through earnings, cash flows and dividends. Second, traders probably underestimate their competition: high frequency algorithms, artificial intelligence driven hedge funds, and pro desk traders, to name a few. If you would not bet your life savings in a tennis match against Roger Federer, why would you bet your savings against stock-trading pros?
5. When buying stocks, search for bargains among quality stocks: Quality has become a casual term today, but our definition includes prudent balance sheets, low capital intensity and the “rinse and repeat” effect of reinvesting corporate cash flows into sustainable growth projects. Quality stocks create wealth through compounding the latter effect, when bought at a discount. Most important, they eliminate common investor mistakes such as trading into worse investments or paying too much in commissions and taxes. See Rules No. 6 and 7.
66. Learn from your mistakes: All investors make mistakes, and they should be expected. Every investing mistake should be seen as an opportunity to improve, and it is important to take the lesson and move on. Whenever I saw Sir John make an investment mistake his demeanor never changed, and he moved on to the next idea. It was a powerful example that I revisit often.
9. Buy low: “ Buying at the point of maximum pessimism ” as Sir John put it, is critical to investment success. Panics and bear markets are a reliable source for excess return. Everyone wins in a bull market, and investor returns will be determined by their behavior in a bear market.
6. Buy value, not market trends or the economic outlook: Owning a rising stream of earnings and cash flows builds wealth, not guessing at market moves or economic outcomes. Numerous studies have shown that a selection of firms can produce rising sales and earnings, leading to positive share price returns in a recession. The current environment is a time for active investors to show their meddle through bottom-up stock picking. We are focused on firms with the ability to take market share in this challenging economy.