Investing in Neglected Stocks

Scott Phillips

Many years ago, Sir John Templeton offered some straightforward words on investing and how investors should recondition their thinking in their attempt to find success in the discipline. He said, “If you went to the doctor and he gave you a diagnosis, and advice on how to treat the ailment, and then you found 10 other doctors that agreed with him, you should take their advice. If you found eight engineers who all agreed on the plans for constructing a bridge, then you should follow their plans if you want the bridge to be safe. However, when purchasing a stock, if you find one dozen analysts who all advise to purchase the same stock, you can be sure that the stock will not be a good purchase.” His ...