Away from you Quote by John Templeton
“See the investment world as an ocean and buy where you get the most value for your money. Right now the value is in non-callable bonds. Most bonds are callable so when they start going up in price, the debtor calls them away from you. But the non-callable bonds, especially those non-callable for 25-30 years, can go way up in price if interest rates go way down.”
About This Quote
Source Speech: Investment Advice, John Templeton, 1990s
Invest where you receive the greatest value; currently long‑term non‑callable bonds offer high upside if rates fall.
In simple terms: Buy high‑value assets; non‑callable bonds can rise sharply when rates drop.
Key Takeaway
Seek value in stable, non‑callable securities.
Themes
investment
value
risk management
fixed income
Mood
cautious
analytical
Type
financial
advisory
When to use this quote
- portfolio construction
- retirement planning
- risk diversification
Key Concepts
bond pricing
interest rate risk
callability
long‑term yield
Questions to Reflect On
- How do you assess the trade‑off between yield and call risk?
- What indicators signal a favorable rate environment for bonds?
A Different Perspective
Callable bonds may be redeemed, limiting upside; market timing is uncertain.
