TIP612: Investing In Fear: Profiting From Maximum Pessimism w/ Lauren Templeton

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 3 March 2024

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

Kyle talks to Lauren Templeton about the many investing and life lessons she learned from investing legend Sir John Templeton, how she sets up her daily life to stay disciplined and avoid biases, how to utilize the scientific method for investing purposes, how we can use lessons from history to improve our decision making today, the importance of utilizing multiple evaluation tools to find great investments, sectors that are facing maximal pessimism today that might be the winners of tomorrow, and much, much more! IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 05:56 - Why we should combat “home bias”. 05:56 - Why high savings rates are so important for new opportunities. 05:56 - How savings rates have changed with the times. 05:56 - The hurdles you need to overcome for investing in Japan. 12:06 - The importance of looking at unpopular sectors. 12:24 - What Sir John Templeton thought about quality. 12:24 - Why maximum optimism is a risky place to deploy capital. 12:24 - How Sir John Templeton offset value traps using his strategy. 12:24 - Why you should use multiple evaluation tools in your analysis. 17:38 - How Lauren created her life to stay disciplined. 17:38 - The strengths of lowering how reactive you are. 17:38 - The importance of living a disciplined lifestyle to improve yourself. 21:18 - How to utilize the scientific method in investing. 27:01 - How Lauren has decreased the effects of FOMO. 27:01 - The importance of removing yourself from the crowd. 29:54 - How Lauren has used inversion to help her investing strategy. 34:22 - Why you should look at sectors with bad outlooks. 34:22 - How Lauren fights confirmation bias. 43:10 - How Lauren’s investing strategy has altered given the current macro backdrop. 47:07 - The importance of alignment between your daily life and investing philosophy. 47:07 - How Sir John Templeton tinkered with his portfolio while staying true to his core philosophy. 49:11 - Why you should understand maximum pessimism and how it creates opportunities. 49:11 - The historical returns in small caps after having the valuation gap we are seeing today. 49:11 - Why Lauren thinks China is showing maximum pessimism based on her observations at ValueX. 49:11 - Why Lauren sees an opportunity in small caps right now. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Buy Lauren’s book, The Templeton Way here. Listen to Lauren’s podcast, Investing The Templeton Way here. Subscribe to her newsletter, the Maximum Pessimism Report here. Learn more about the Berkshire Summit by clicking here or emailing Clay at [email protected]. Follow Kyle on Twitter and LinkedIn. Check out all the books mentioned and discussed in our podcast episodes here. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: River Fidelity NetSuite Toyota TurboTax Wise NerdWallet Linkedin Marketing Solutions Babbel Shopify Fundrise Vacasa HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You're listening to TIP. In today's episode I'm talking to Lauren Templeton, the CEO of
0:06.2	Templeton and Phillips capital management and also the great niece of one of the most successful
0:10.8	investors of all time, Sir John Templeton.
0:13.8	Sir John Templeton had an incredible track record, compounding capital at 14.5% over 38 years
0:19.8	between 1954 and 1992, turning a $10,000 investment into 1.7 million over that period.
0:27.3	And throughout much of Lauren's life, Sir John Templeton mentored her on his ways of thrift,
0:31.7	saving, thinking, investing, strategy, and frameworks.
0:35.4	Templeton and Phillips capital management are focused on three investing
0:38.7	philosophies that were passed down to Lorne from her great uncle.
0:42.1	One, focus on value. Two, contrarian behavior
0:45.6	is key. And three, trouble is opportunity. Sir John Templeton was a pioneer
0:50.4	of international investing, starting with his investments into Japan, when nobody else would touch
0:55.2	a stock in that country with a 10-foot pole.
0:57.7	He thought differently than other investors and is one of the best examples out there of
1:01.6	how rewarding it can be to think differently.
1:04.4	One of Sir John Templeton's biggest ideas was at times of maximum pessimism offered the best time
1:09.2	to buy stocks.
1:10.8	In today's episode, I'll talk with Lauren about the many investing in life lessons she learned from investing legend Sir John Templeton, how she sets up her daily life to stay disciplined and avoid biases, how to utilize the scientific method for investing purposes, how we can use
1:24.9	lessons from history to improve our decision-making today, the importance of
1:28.8	utilizing multiple evaluation tools to find great investments, sectors that are facing maximal pessimism today
1:34.6	that might be the future winners of tomorrow, and much, much more. This was an
1:38.4	enlightening chat and I hope you enjoy today's episode with Lauren Templeton. Celebrating 10 years.
	...

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