Guest article written for AllAboutAlpha.com – the official publication of the Chartered Alternative Investment Analyst (CAIA) Association
Value investing has been a successful strategy for many investors since the earliest days of equity markets. The principle is quite simple. Investors select stocks they feel are trading for artificially less than their intrinsic values and hence are (significantly) undervalued by the marketplace.
Sir Jon Templeton was a pioneer in this field He began his career on Wall Street in 1937 and went on to create some of the world’s largest and most successful international investment funds. In 1999, Money magazine rated him as, “arguably the greatest global stock picker of the century…“ He sold the Templeton Funds in 1992 to the Franklin Group for $440 million, and today his great niece Lauren Templeton continues the legacy through her firm, “Lauren Templeton Investments“. Ms. Templeton is the president and founder of the Southeastern Hedge Fund Association, INC and is a Trustee of the Baylor School and the Finance Advisory Board of the University of Tennessee Chattanooga alongside which, she is a member of the Templeton Foundation. She also co-authored “Investing the Templeton Way: The Market Beating Strategies of Value Investing Legendary Bargain Hunter“.
In this interview, Ms. Templeton takes us through her story of generating alpha from value strategies.