A value-oriented contrarian with a global perspective, John Templeton stresses flexibility. He is against permanently adopting any asset or type of selection.In a sense this is understandable given that his investing style is comparison-shopping (always be ready to ditch one stock for a better one), and the confidence engendered by a wealth of knowledge.He was the pioneer in the global search for value and the founder of Templeton Group. Given his global bargain-hunting style, he looks for open economies with low socialistic tendencies and pro-investment policies.It is interesting to note how he determines value.To him, a hundred or so factors can be considered in making an appraisal, but most of these are industry-specific; four are always present: The four key factors to consider in fundamental analysis of any company are:
1. The p/e ratio in relation to comparable companies
2. Operating profit margins; see if they are rising
3. Liquidation value, which means the price at sell off
4. The average earning growth rate, and consistency of growth. Avoid companies where earnings slip two years in a row. Also steer clear of those growing too fast.
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