IN THIS EPISODE, YOU’LL LEARN:

• What helped Sir John Templeton think independently and have the courage to stray from the crowd.
• Sir John’s lessons living through the Great Depression.
• How Scott works to teach his children the values around money that Templeton embodied.
• The investment lessons that Scott learned from studying the career of Templeton.
• The three ways to generate excess returns in the markets.
• How Scott’s fund capitalized on the market panic in March 2020.
• Areas of the market Scott deems to be significantly undervalued.
• Why US investors should consider diversifying away from the dollar.
• Scott’s current thoughts on investing in China.
• How Scott thinks about shorting the occasional bubble in the market.
• Scott’s thoughts on continuing to be optimistic about the future.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Clay Finck: On today’s episode, I’m joined by Scott Phillips to discuss how to invest during times of max pessimism. Scott is married to and manages money with Lauren Templeton, who is Sir John Templeton’s great niece. My co host William Green in his book, Richer, Wiser, Happier, referred to Sir John Templeton as probably the greatest international investor of the 20th century.

[00:00:20] Clay Finck: Sir John’s life was outlined in chapter 2 of William’s book and it was titled The Willingness to Be Lonely. As Sir John was an amazing independent thinker who wasn’t afraid to stray away from the crowd and invest in markets where investors wouldn’t even think for a second to touch. These markets were often times the most distressed and offered the highest level of asymmetric returns.

[00:00:41] Clay Finck: During this episode, Scott and I chat about what helped Sir John Templeton think independently and have the courage to stray from the crowd, what Sir John learned living through the Great Depression, how Scott’s fund capitalized on the market panic of March 2020, and more. Areas of the market Scott deems to be significantly undervalued.

[00:00:58] Clay Finck: Why US investors should consider diversifying away from the dollar. Scott’s current thoughts on investing in China. How Scott thinks about shorting market bubbles similar to Sir John during the tech bubble. Scott’s thoughts on continuing to be optimistic about the future during an era of doom and gloom headlines, and so much more.

[00:01:16] Clay Finck: This was a really fun chat and I really hope you enjoy today’s episode with Scott Phillips.

[00:01:25] Intro: You are listening to The Investor’s Podcast where we study the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected.

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BOOKS AND RESOURCES

• Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
• Check out Templeton & Phillips Capital Management.
• Scott’s books: Investing the Templeton Way, The Templeton Touch, & Buying at the Point of Maximum Pessimism.
• Sir John Templeton’s book: The Templeton Plan.
• Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
  
• Related Episode:TIP585: Concentrated Value Investing w/ Shree Viswanathan or watch the video.
• Check out all the books mentioned and discussed in our podcast episodes here.

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