Core Insights - The article discusses John Templeton's investment philosophy, particularly his approach to value investing and contrarian strategies, which have led to significant investment success over decades [1][2]. Group 1: Low-Priced Stocks - Templeton's initial success came from borrowing $10,000 to invest in 104 stocks priced under $1 during the economic recovery post-Great Depression, which resulted in a profit of $30,000 [3]. - His definition of "low-priced stocks" focuses on relative price compared to intrinsic value, rather than absolute price [3]. - Key considerations for investing in low-priced stocks include recognizing trends, the importance of low price, long holding periods (average of 4 years), and diversification (investing in 104 stocks with an average of less than $100 each) [4][5]. Group 2: Global Investment - Templeton pioneered global investing by founding the Templeton Growth Fund in 1954, challenging the prevailing belief that the U.S. market was the best [5][6]. - Global investment expands the selection pool from approximately 3,000 U.S. stocks to at least 20,000 worldwide, allowing for better opportunities [7]. - It helps avoid bear markets and economic cycles, as different markets may perform well at different times, thus providing a risk diversification strategy [7][8]. - An example of successful global investment is Templeton's investment in Japan during the 1960s, where he capitalized on a 10% GDP growth rate compared to the U.S.'s 4%, leading to significant returns as the Japanese stock market grew 36 times over 30 years [8]. Group 3: Short Selling - Short selling involves borrowing stocks to sell them at a high price, then buying them back at a lower price to profit from the difference [9]. - Templeton's notable short selling occurred in 1999 against overvalued tech stocks during the dot-com bubble, where he identified stocks likely to drop after their executives' lock-up periods ended [11][12]. - He shorted 84 tech stocks, betting $185 million, and profited as the Nasdaq index halved within a year, with many of the stocks he shorted dropping over 95% [12].