Sir John Templeton was known as a global bargain hunter. He loved to spot opportunities across the world when majority of the investors invested within their own countries.
One of his major investments was in the Japanese stocks, when it was out of fashion to do so. He invested in Japan in early 1970s, much before the world saw any reason to do so.
Many Japanese conglomerates had cross-holdings, which the market could not put a value on. Sir John started loading up on stocks of some great companies, which were valued at single-digit PE ratios.
By the time the world got interested in Japanese stocks, the stock prices as well as the PE ratios had gone up a lot. Sir John Templeton had started to withdraw. Much before the peak of the market in 1989, he was completely out of Japanese stocks.
A true contrarian, a true value-investor.
#RidingTheRollerCoaster – 133