Buying at the Point of Maximum Pessimism: Six Value Investing Trends from China to Oil to Agriculture

Foreword

“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”

—Sir John Templeton, February 1994

My late great uncle, Sir John Templeton, kept a plaque on his desk that read, “Trouble is opportunity.” He also coined the phrase “Investing at the point of maximum pessimism” to describe the optimal time to invest.

Buying at the point of maximum pessimism is more than a simple investment motto. It is a successful and time tested investment strategy that can significantly increase the odds of investment success in your favor. Accommodating the sellers, as my uncle always put it, is simple. ...