February 23, 2007

The Templeton Plan – Notes from the Book

Posted in Uncategorized at 1:23 pm by John Roney

Sir John Templeton is one of the most successful investors the world has ever seen. I am reading this book for the second time in more depth because I believe studying what a successful person has written will help me become more successful as well.

 

John Templeton is a billionaire and so it seems good to read what he has written, especially when you can buy such a book for $7. How is that for value: the advice of a billionaire for $7?

 

That’s one of the reasons reading is so important. You can discover lessons that successful people have taken years or even lifetimes to learn and they distill it into a book for you to read and learn from and apply in your life.

 

Introduction to The Templeton Plan

“John Marks Templeton, regarded by Wall Street as one of the world’s wisest investors, is the founder of the Templeton mutual fund group, which now manages more than $6 billion owned by more than 500,000 public investors. He started his investment career on a borrowed $10,000 and thus is a living embarrassment to the efficient market theory, which holds that you cannot start from nothing and end up with a large fortune in a single lifetime.”

Talk about providing value—500,000 investors trust their money to the Templeton fund. That is massive value to massive value. The first thing this makes me think is that helping people grow the money they have is a valuable skill to have, and also, a service that many people need.

  • Templeton believes that successful investing is a product of a person’s overall relationship to life and to the universe. He believes that God created the universe and is continuously creating the universe. While many people hold that financial success is separate from religious belief, that there is a conflict between the two, John believes with conviction that the two are related. He contends that the most successful people are often the most religiously motivated.
  • At the Templeton group, all of the directors’ and shareholders’ meetings open with prayer. But they don’t pray for specific investments. Templeton says, “What we do is pray for wisdom. We pray that the decisions we make today will be wise decisions and that our talks about different stocks will be wise talks.
  • If you had put $10,000 into the first Templeton fund in 1954, your investment would have grow to more than $800,000 by 1987 with all dividends reinvested. That’s the combined power of compound interest and wise decision making. Wow.

    “Backed by our beliefs,” he says, “we’re not so uptight and on edge as those who are in the business merely to make money. We start each day by setting our minds on the important things and praying. All our transactions are influenced by that.”

Business by Christian Principles

“There are businesses that apply the un-Christian principle. They ignore the human factor. They lack the wholehearted desire to offer better service and higher quality at lower prices. More often than not, those businesses fail. In general, people who take advantage in their dealings will get a bad reputation and before long others will not want to deal with them.”

The purpose of The Templeton Plan is to reveal the vital connections between the belief in religious principles and belief in oneself that will enable you to become a successful and happy person.

For each of the following lessons, keep three questions in mind to ask yourself:

  1. What do these ideas really mean?
  2. How do they apply to my own life?
  3. How can I use their meaning in achieving success?

There is no reason that this plan which worked for John Templeton and many others will not work for you. Put it to the test.

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