Sir John Templeton, the author of that immortal warning engraved on the heart of every value investor:
“This time it’s different’ are the four most expensive words in the English language.”
So, who is Sir John and why does the above quote matter, or should it matter today?
Sir John Templeton was a pioneer in global investing.
He established the John Templeton Foundation to support scientific research and human well-being.
Templeton was a contrarian investor, seeking value in overlooked or unpopular stocks.
He was knighted by Queen Elizabeth II in 1987 for his philanthropic contributions.
A Rhodes Scholar, Templeton graduated from Yale and Oxford University with degrees in economics and law. This was at a time when graduating from Yale and Oxford was a positive…
Sir John Templeton was regarded as a contrarian investor and mutual fund manager who founded the Templeton Growth Fund in 1954, which boasted an average annual return of 15% over nearly four decades. Templeton was an avid traveler and is known for his global investments
That average annual return number was a bit too “convenient” for me, so I dug into his track record, and it was 14.5% CAGR vs the S&P 11.8.
A $10,000 investment over this time frame would have been ~$788,000 bigger with Sir John vs S&P.
“What about drawdowns?” you should ask…
Major Peak-to-Trough Drawdowns (1954–1992)
| Period | Event | S&P 500 Drawdown | Templeton Growth Fund Drawdown | Difference (Templeton advantage) |
| 1973–1974 | Oil crisis / stagflation bear | -48.2% | -21% to -23% | +25–27% |
| Oct 1987 | Black Monday crash | -33.5% | -15% to -17% | +16–18% |
| 1968–1970 | Nifty Fifty bear / recession | -36.1% | -27% to -29% | +7–9% |
| 1980–1982 | Volcker recession / inflation | -27.1% | -19% to -21% | +6–8% |
| 1961–1962 | Flash crash / Kennedy slide | -27.0% | -23% to -25% | +2–4% |
| 1966 | Credit crunch bear | -22.2% | -18% to -20% | +2–4% |
This enforces a point I make on a regular basis: It isn’t what you make in up markets it is what you don’t lose in down markets.
He purposefully sought out stocks that had been abandoned or overlooked by investors. Templeton saw a troubled business as an opportunity for growth. He also looked for popularly overvalued assets and took investment positions to take advantage of their eventual fall.
Templeton preferred nations with fewer regulatory obstacles and low inflation, and he saw the benefits of diversifying outside of America.
A pioneer of emerging market investing in the 1960s, he was one of the first to invest in the Japanese market. Money magazine named him “arguably the greatest global stock picker of the century.”
What Is the “Templeton Touch”?
Described by William Proctor and Scott Philips, The Templeton Touch was his global focus, curiosity, future-mindedness, personal touch with clients, and his willingness to take reasonable risks.
How Has Faith Influenced Sir John Templeton?
Templeton was a deeply spiritual, although unorthodox, individual. He lived a life firmly rooted in the Christian traditions of modesty and charity. His love of science and his God led him to form his foundation in 1987 on the basis that mutual dialogue might enrich the understanding of both.
The Bottom Line
Sir John Templeton is a noted global investor and contrarian thinker. His Templeton Growth Fund was the first to recognize untapped investments outside of the United States, and his legacy continues through his renowned authorship and philanthropy.
“This time it’s different’ are the four most expensive words in the English language.”
- (Sir John bio info generously sourced from Investopedia)
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