How to buy stock?
John Templeton's 16 investment rules
SIR John Templeton, the founder of Templeton Funds was a multi-faceted personality, a legendary investor, fund manager and an astute philanthropist. He wrote 16 rules of investment success, which can be found here.
They are the crux of his investment ideas and philosophy. Let us examine their relevance in the Indian context.
Rule 1: Begin with a prayer
Prayer helps you think clearly and make fewer mistakes. Meditation is known to reduce anxiety and stress, helping in better decision making.
Rule 2: Invest for maximum total real return
It is important to only consider the total real return i.e. the money you make in your investment lifetime after inflation and taxes. Many investors get carried away by short-term movements. They tend to ignore the long-term opportunities. Thus, it is wise to invest for total real returns.
Rule 3: Remain flexible and open-mind ...more