Quote #22

Brandes' point of view

The investment world likes a good story (don’t we all?) In this context, “This time is different” is usually linked to a story. Stories aim to capture the imagination, and are prone to exaggeration and optimism. At Brandes, we counter with what we’ve found to be one of the most useful words in investing: “Why?” On the rare occasion when it might really be different this time, sufficient over-optimism is typically priced in, such that it’s not an opportunity for a value investor.  

Source: “16 Rules for Investment Success” by Sir John Templeton, Franklin Templeton Investments, 2017. Reprinted from World Monitor: The Christian Science Monitor Monthly, 1993.