UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR/A

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04892
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TEMPLETON GROWTH FUND, INC.
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(Exact name of registrant as specified in charter)

500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
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(Address of principal executive offices) (Zip code)

CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)

Registrant's telephone number, including area code: (954) 527-7500
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Date of fiscal year end: 8/31
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Date of reporting period: 8/31/07
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ITEM 1. REPORTS TO STOCKHOLDERS.

[GRAPHIC OMITTED]

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AUGUST 31, 2007
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ANNUAL REPORT AND SHAREHOLDER LETTER GLOBAL
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WANT TO RECEIVE
THIS DOCUMENT
FASTER VIA EMAIL?
TEMPLETON GROWTH FUND, INC.
Eligible shareholders can
sign up for eDelivery at
franklintempleton.com.
See inside for details.
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[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

Franklin o TEMPLETON o Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management groups--
Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a
recognized leader in fixed income investing and
also brings expertise in growth- and value-style
U.S. equity investing.

TEMPLETON. Founded in 1940, Templeton pioneered
international investing and, in 1954, launched
what has become the industry's oldest global fund.
Today, with offices in over 25 countries,
Templeton offers investors a truly global
perspective.

MUTUAL SERIES. Founded in 1949, Mutual Series is
dedicated to a unique style of value investing,
searching aggressively for opportunity among what
it believes are undervalued stocks, as well as
arbitrage situations and distressed securities.

TRUE DIVERSIFICATION Because our management groups work independently
and adhere to different investment approaches,
Franklin, Templeton and Mutual Series funds
typically have distinct portfolios. That's why our
funds can be used to build truly diversified
allocation plans covering every major asset class.

RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to
consistently provide investors with exceptional
risk-adjusted returns over the long term, as well
as the reliable, accurate and personal service
that has helped us become one of the most trusted
names in financial services.

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MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS
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[GRAPHIC OMITTED]

Not part of the annual report

Contents

SHAREHOLDER LETTER ........................................................ 1

ANNUAL REPORT

Templeton Growth Fund, Inc. ............................................... 3

Performance Summary ....................................................... 7

Your Fund's Expenses ...................................................... 12

Financial Highlights and Statement of Investments ......................... 14

Financial Statements ...................................................... 23

Notes to Financial Statements ............................................. 27

Report of Independent Registered Public Accounting Firm ................... 36

Tax Designation ........................................................... 37

Meeting of Shareholders ................................................... 41

Board Members and Officers ................................................ 42

Shareholder Information ................................................... 47

Annual Report

Templeton Growth Fund, Inc.

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Templeton Growth Fund seeks long-term
capital growth. Under normal market conditions, the Fund invests primarily in
the equity securities of companies located anywhere in the world, including
emerging markets.

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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.
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This annual report for Templeton Growth Fund covers the fiscal year ended August
31, 2007.

PERFORMANCE OVERVIEW

Templeton Growth Fund - Class A posted a +12.60% cumulative total return for the
12 months under review. The Fund underperformed its benchmark, the Morgan
Stanley Capital International (MSCI) World Index, which posted a +17.54% total
return for the same period.1 For the 10-year period ended August 31, 2007,
Templeton Growth Fund - Class A delivered a +148.31% cumulative total return,
compared with the MSCI World Index's +106.33% cumulative total return for the
same period. 1 Please note that index performance information is provided for
reference and that we do not attempt to track the index, but rather undertake
investments on the basis of fundamental research. You can find more performance
data in the Performance Summary beginning on page 7.

ECONOMIC AND MARKET OVERVIEW

In spite of elevated energy prices, higher global interest rates, a weaker U.S.
housing market and restrained U.S. economic growth, the global economy remained
resilient throughout the 12-month reporting period. The strength of consumer and
corporate demand, particularly in developing economies, along with reasonably
low inflation, tight or improving labor markets, and moderate, though higher,
global interest rates, continued to support the economic recovery, which began
in 2002.

1. Source: Standard & Poor's Micropal. The MSCI World Index is a free
float-adjusted, market capitalization-weighted index designed to measure equity
market performance in global developed markets. As of 8/31/07, the Fund's Class
A 10-year average annual total return not including the maximum sales charge was
+9.52%, compared with the +7.51% 10-year average annual total return of the MSCI
World Index. The index is unmanaged and includes reinvested dividends. One
cannot invest directly in an index, nor is an index representative of the Fund's
portfolio.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 19.

Annual Report | 3

GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 8/31/07

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Europe 44.6%
North America 40.1%
Asia 11.4%
Latin America 0.5%
Middle East & Africa 0.4%
Short-Term Investments & Other Net Assets 3.0%

These factors also contributed to the strength of global equity markets during
the 12 months under review. In addition, narrow corporate credit spreads,
together with strong cash flows from the corporate sector in the world's capital
markets contributed to record-breaking global merger and acquisition activity.
In particular the private equity industry, which has grown substantially in
recent years, played a pivotal role in a number of large and high profile
acquisitions.

However, concerns about slower growth and declining asset quality surfaced
during the first quarter of 2007. These were initially centered on the U.S.
sub-prime mortgage market but spread in August 2007 to global capital markets.
In particular, the difficulties of assessing risk and the value of collateral in
the structured finance industry contributed to a decline in risk appetite among
both lenders and investors. The private equity industry, which is reliant on the
availability of cheap credit, was particularly affected, and deal activity
slowed toward the end of the period.

Despite this decline in investor confidence, most global equity markets ended
the 12-month period with double-digit total returns. Many stock market indexes
in the U.S. and most European countries reached six-year highs, and many
emerging market indexes in Asia, Europe and Latin America neared or reached
all-time highs during the latter part of the period.

INVESTMENT STRATEGY

Our investment strategy employs a bottom-up, value-oriented, long-term approach.
We focus on the market price of a company's securities relative to our
evaluation of the company's long-term earnings, asset value and cash flow
potential. As we look worldwide, we consider specific companies, rather than
sectors or countries, while doing in-depth research to construct a bargain list
from which we buy. Before we make a purchase, we look at the company's
price/earnings ratio, price/cash flow ratio, profit margins and liquidation
value.

4 | Annual Report

MANAGER'S DISCUSSION

All our buy and sell decisions are based on our analysis of the long-term (more
than five years) prospects for each company. Our bottom-up investment strategy
frequently results in a portfolio that has a very different geographic and
industry mix than that of the Fund's benchmark, the MSCI World Index.

Among the most significant individual contributors to the Fund's performance
relative to the benchmark MSCI World Index for the year under review were German
electronics and electrical engineering firm Siemens, French vehicle manufacturer
Peugeot and U.K. wireless phone services provider Vodafone Group. Detractors
from relative performance during the period included U.S. acute care hospitals
operator Tenet Healthcare, Japanese banking giant Mitsubishi UFJ Financial Group
and U.S. medical supplies producer Boston Scientific.

From a sector perspective, the Fund's holdings in the telecommunication services
sector contributed positively to relative performance for the reporting period.
In addition to Vodafone, France Telecom, a fixed-line and wireless voice and
data services provider, performed well. The Fund's investments in the consumer
discretionary sector also benefited performance for the period. In particular,
U.S. travel reservation web site Expedia performed well as the company used a
strong balance sheet to repurchase 25 million shares. Stock selection in the
consumer staples sector also boosted relative Fund performance.

Conversely, an overweighted position and stock selection in the health care
sector weighed on the Fund's relative performance during the fiscal year.
Significant detractors were the aforementioned Boston Scientific, in the health
care equipment and supplies industry, and Tenet Healthcare, in the health care
providers and services industry. Additionally, the Fund's relative performance
for the period was negatively affected by its underweighted allocation and stock
selection in the materials sector. In particular, the lack of any exposure to
the metals and mining industry hurt relative results. The Fund's cash position
also hampered relative performance.

By country, the Fund's stock selection in France positively impacted performance
relative to the index for the 12 months under review. On the other hand, the
Fund's U.S. holdings dragged on relative performance.

TOP 10 COUNTRIES
Based on Equity Securities as of 8/31/07

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% OF TOTAL
NET ASSETS
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U.S. 39.2%
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U.K. 16.5%
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France 6.8%
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Germany 6.5%
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Japan 5.3%
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Italy 4.6%
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South Korea 4.5%
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Netherlands 4.3%
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Switzerland 3.1%
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Finland 1.6%
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Annual Report | 5

TOP 10 EQUITY HOLDINGS
8/31/07

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COMPANY % OF TOTAL
SECTOR/INDUSTRY, COUNTRY NET ASSETS
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Siemens AG 2.3%
INDUSTRIAL CONGLOMERATES, GERMANY
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Microsoft Corp. 2.3%
SOFTWARE, U.S.
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General Electric Co. 2.2%
INDUSTRIAL CONGLOMERATES, U.S.
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Seagate Technology 2.2%
COMPUTERS & PERIPHERALS, U.S.
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Pfizer Inc. 2.2%
PHARMACEUTICALS, U.S.
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Oracle Corp. 2.1%
SOFTWARE, U.S.
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News Corp., A 2.1%
MEDIA, U.S.
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HSBC Holdings PLC 2.0%
COMMERCIAL BANKS, U.K.
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American International Group Inc. 1.9%
INSURANCE, U.S.
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Royal Dutch Shell PLC, B 1.8%
OIL, GAS & CONSUMABLE FUELS, U.K.
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It is important to recognize the effect of currency movements on the Fund's
performance. In general, if the value of the U.S. dollar goes up compared with a
foreign currency, an investment traded in that foreign currency will go down in
value because it will be worth fewer U.S. dollars. This can have a negative
effect on Fund performance. Conversely, when the U.S. dollar weakens in relation
to a foreign currency, an investment traded in that foreign currency will
increase in value, which can contribute to Fund performance. For the 12 months
ended August 31, 2007, the U.S. dollar declined in value relative to most
non-U.S. currencies. As a result, the Fund's performance was positively affected
by the portfolio's substantial investment in securities with non-U.S. currency
exposure. However, one cannot expect the same result in future periods.

Thank you for investing in Templeton Growth Fund. We welcome your comments and
look forward to serving your future investment needs.

[PHOTO OMITTED] /s/ Murdo Murchison

Murdo Murchison, CFA
Portfolio Manager
Templeton Growth Fund, Inc.

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF AUGUST 31, 2007, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT OUR
MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE
DEPENDING ON FACTORS SUCH AS MARKET AND ECONOMIC CONDITIONS. THESE OPINIONS MAY
NOT BE RELIED UPON AS INVESTMENT ADVICE OR AN OFFER FOR A PARTICULAR SECURITY.
THE INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET,
COUNTRY, INDUSTRY, SECURITY OR THE FUND. STATEMENTS OF FACT ARE FROM SOURCES
CONSIDERED RELIABLE, BUT THE INVESTMENT MANAGER MAKES NO REPRESENTATION OR
WARRANTY AS TO THEIR COMPLETENESS OR ACCURACY. ALTHOUGH HISTORICAL PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, THESE INSIGHTS MAY HELP YOU UNDERSTAND OUR
INVESTMENT MANAGEMENT PHILOSOPHY.

6 | Annual Report

Performance Summary as of 8/31/07

Your dividend income will vary depending on dividends or interest paid by
securities in the Fund's portfolio, adjusted for operating expenses of each
class. Capital gain distributions are net profits realized from the sale of
portfolio securities. The performance table and graphs do not reflect any taxes
that a shareholder would pay on Fund dividends, capital gain distributions, if
any, or any realized gains on the sale of Fund shares. Total return reflects
reinvestment of the Fund's dividends and capital gain distributions, if any, and
any unrealized gains or losses.

PRICE AND DISTRIBUTION INFORMATION

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CLASS A (SYMBOL: TEPLX) CHANGE 8/31/07 8/31/06
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Net Asset Value (NAV) +$0.86 $26.15 $25.29
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DISTRIBUTIONS (9/1/06-8/31/07)
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Dividend Income $0.4880
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $2.1700
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CLASS B (SYMBOL: TMGBX) CHANGE 8/31/07 8/31/06
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Net Asset Value (NAV) +$0.80 $25.55 $24.75
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DISTRIBUTIONS (9/1/06-8/31/07)
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Dividend Income $0.3023
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $1.9843
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CLASS C (SYMBOL: TEGTX) CHANGE 8/31/07 8/31/06
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Net Asset Value (NAV) +$0.77 $25.40 $24.63
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DISTRIBUTIONS (9/1/06-8/31/07)
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Dividend Income $0.3160
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $1.9980
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CLASS R (SYMBOL: TEGRX) CHANGE 8/31/07 8/31/06
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Net Asset Value (NAV) +$0.82 $25.88 $25.06
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DISTRIBUTIONS (9/1/06-8/31/07)
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Dividend Income $0.4393
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $2.1213
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Annual Report | 7

Performance Summary (CONTINUED)

PRICE AND DISTRIBUTION INFORMATION (CONTINUED)

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ADVISOR CLASS (SYMBOL: TGADX) CHANGE 8/31/07 8/31/06
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Net Asset Value (NAV) +$0.88 $26.22 $25.34
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DISTRIBUTIONS (9/1/06-8/31/07)
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Dividend Income $0.5481
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $2.2301
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PERFORMANCE

CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES. CLASS A: 5.75%
MAXIMUM INITIAL SALES CHARGE; CLASS B: CONTINGENT DEFERRED SALES CHARGE (CDSC)
DECLINING FROM 4% TO 1% OVER SIX YEARS, AND ELIMINATED THEREAFTER; CLASS C: 1%
CDSC IN FIRST YEAR ONLY; CLASS R/ADVISOR CLASS: NO SALES CHARGES. THE FUND MAY
CHARGE A 2% FEE ON REDEMPTIONS MADE WITHIN SEVEN DAYS OF PURCHASE.

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CLASS A 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return 1 +12.60% +98.84% +148.31%
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Average Annual Total Return 2 +6.14% +13.39% +8.88%
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Value of $10,000 Investment 3 $10,614 $18,744 $23,404
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Avg. Ann. Total Return (9/30/07) 4 +7.19% +16.73% +8.52%
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Total Annual Operating Expenses 5 1.05%
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CLASS B 1-YEAR 5-YEAR INCEPTION (1/1/99)
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Cumulative Total Return 1 +11.78% +91.57% +137.46%
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Average Annual Total Return 2 +7.78% +13.65% +10.49%
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Value of $10,000 Investment 3 $10,778 $18,957 $23,746
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Avg. Ann. Total Return (9/30/07) 4 +8.88% +17.03% +10.77%
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Total Annual Operating Expenses 5 1.79%
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CLASS C 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return 1 +11.78% +91.61% +130.46%
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Average Annual Total Return 2 +10.78% +13.89% +8.71%
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Value of $10,000 Investment 3 $11,078 $19,161 $23,046
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Avg. Ann. Total Return (9/30/07) 4 +11.84% +17.24% +8.35%
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Total Annual Operating Expenses 5 1.79%
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CLASS R 1-YEAR 5-YEAR INCEPTION (1/1/02)
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Cumulative Total Return 1 +12.33% +96.32% +85.56%
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Average Annual Total Return 2 +12.33% +14.44% +11.54%
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Value of $10,000 Investment 3 $11,233 $19,632 $18,556
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Avg. Ann. Total Return (9/30/07) 4 +13.46% +17.83% +11.94%
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Total Annual Operating Expenses 5 1.30%
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ADVISOR CLASS 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return 1 +12.93% +101.40% +154.89%
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Average Annual Total Return 2 +12.93% +15.03% +9.81%
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Value of $10,000 Investment 3 $11,293 $20,140 $25,489
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Avg. Ann. Total Return (9/30/07) 4 +13.99% +18.42% +9.45%
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Total Annual Operating Expenses 5 0.80%
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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. FOR MOST RECENT MONTH-END PERFORMANCE, SEE "FUNDS AND
PERFORMANCE" AT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236.

8 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT

Total return represents the change in value of an investment over the periods
shown. It includes any current, applicable, maximum sales charge, Fund expenses,
account fees and reinvested distributions. The unmanaged index includes
reinvestment of any income or distributions. It differs from the Fund in
composition and does not pay management fees or expenses. One cannot invest
directly in an index.

CLASS A (9/1/97-8/31/07)

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Date Templeton Growth Fund MSCI World Index 6 CPI 6
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9/1/1997 $ 9,425 $ 10,000 $ 10,000
9/30/1997 $ 10,034 $ 10,545 $ 10,025
10/31/1997 $ 9,378 $ 9,991 $ 10,050
11/30/1997 $ 9,406 $ 10,170 $ 10,044
12/31/1997 $ 9,523 $ 10,295 $ 10,031
1/31/1998 $ 9,537 $ 10,584 $ 10,050
2/28/1998 $ 10,062 $ 11,302 $ 10,068
3/31/1998 $ 10,509 $ 11,781 $ 10,087
4/30/1998 $ 10,563 $ 11,897 $ 10,106
5/31/1998 $ 10,244 $ 11,750 $ 10,124
6/30/1998 $ 9,950 $ 12,031 $ 10,137
7/31/1998 $ 9,714 $ 12,013 $ 10,149
8/31/1998 $ 8,237 $ 10,413 $ 10,162
9/30/1998 $ 8,443 $ 10,599 $ 10,174
10/31/1998 $ 9,162 $ 11,559 $ 10,199
11/30/1998 $ 9,491 $ 12,248 $ 10,199
12/31/1998 $ 9,286 $ 12,848 $ 10,193
1/31/1999 $ 9,218 $ 13,131 $ 10,218
2/28/1999 $ 9,150 $ 12,784 $ 10,230
3/31/1999 $ 9,791 $ 13,318 $ 10,261
4/30/1999 $ 11,005 $ 13,845 $ 10,336
5/31/1999 $ 10,608 $ 13,341 $ 10,336
6/30/1999 $ 11,102 $ 13,965 $ 10,336
7/31/1999 $ 11,090 $ 13,925 $ 10,367
8/31/1999 $ 11,096 $ 13,902 $ 10,392
9/30/1999 $ 10,699 $ 13,769 $ 10,442
10/31/1999 $ 10,708 $ 14,487 $ 10,460
11/30/1999 $ 11,183 $ 14,896 $ 10,466
12/31/1999 $ 12,113 $ 16,104 $ 10,466
1/31/2000 $ 11,281 $ 15,184 $ 10,498
2/29/2000 $ 10,899 $ 15,226 $ 10,560
3/31/2000 $ 11,688 $ 16,281 $ 10,647
4/30/2000 $ 11,536 $ 15,594 $ 10,653
5/31/2000 $ 11,749 $ 15,201 $ 10,665
6/30/2000 $ 11,809 $ 15,715 $ 10,721
7/31/2000 $ 11,730 $ 15,275 $ 10,746
8/31/2000 $ 11,943 $ 15,774 $ 10,746
9/30/2000 $ 11,579 $ 14,937 $ 10,802
10/31/2000 $ 11,684 $ 14,688 $ 10,821
11/30/2000 $ 11,612 $ 13,798 $ 10,827
12/31/2000 $ 12,323 $ 14,024 $ 10,821
1/31/2001 $ 12,491 $ 14,296 $ 10,889
2/28/2001 $ 12,323 $ 13,089 $ 10,933
3/31/2001 $ 11,747 $ 12,232 $ 10,958
4/30/2001 $ 12,223 $ 13,139 $ 11,001
5/31/2001 $ 12,464 $ 12,976 $ 11,051
6/30/2001 $ 12,236 $ 12,571 $ 11,070
7/31/2001 $ 12,189 $ 12,406 $ 11,039
8/31/2001 $ 12,136 $ 11,813 $ 11,039
9/30/2001 $ 11,104 $ 10,773 $ 11,088
10/31/2001 $ 11,470 $ 10,981 $ 11,051
11/30/2001 $ 12,195 $ 11,632 $ 11,032
12/31/2001 $ 12,390 $ 11,707 $ 10,989
1/31/2002 $ 12,122 $ 11,353 $ 11,014
2/28/2002 $ 12,362 $ 11,257 $ 11,057
3/31/2002 $ 12,824 $ 11,757 $ 11,119
4/30/2002 $ 12,892 $ 11,362 $ 11,182
5/31/2002 $ 13,161 $ 11,388 $ 11,182
6/30/2002 $ 12,624 $ 10,700 $ 11,188
7/31/2002 $ 11,764 $ 9,799 $ 11,200
8/31/2002 $ 11,770 $ 9,819 $ 11,238
9/30/2002 $ 10,483 $ 8,742 $ 11,256
10/31/2002 $ 11,021 $ 9,388 $ 11,275
11/30/2002 $ 11,742 $ 9,897 $ 11,275
12/31/2002 $ 11,216 $ 9,419 $ 11,250
1/31/2003 $ 10,991 $ 9,134 $ 11,300
2/28/2003 $ 10,617 $ 8,978 $ 11,387
3/31/2003 $ 10,378 $ 8,953 $ 11,455
4/30/2003 $ 11,357 $ 9,753 $ 11,430
5/31/2003 $ 12,251 $ 10,315 $ 11,412
6/30/2003 $ 12,476 $ 10,498 $ 11,424
7/31/2003 $ 12,758 $ 10,713 $ 11,437
8/31/2003 $ 13,054 $ 10,947 $ 11,480
9/30/2003 $ 13,096 $ 11,016 $ 11,517
10/31/2003 $ 13,654 $ 11,672 $ 11,505
11/30/2003 $ 13,991 $ 11,853 $ 11,474
12/31/2003 $ 14,901 $ 12,599 $ 11,461
1/31/2004 $ 15,211 $ 12,804 $ 11,517
2/29/2004 $ 15,593 $ 13,023 $ 11,580
3/31/2004 $ 15,355 $ 12,942 $ 11,654
4/30/2004 $ 15,218 $ 12,684 $ 11,692
5/31/2004 $ 15,304 $ 12,808 $ 11,760
6/30/2004 $ 15,578 $ 13,077 $ 11,797
7/31/2004 $ 15,088 $ 12,653 $ 11,779
8/31/2004 $ 15,160 $ 12,714 $ 11,785
9/30/2004 $ 15,528 $ 12,958 $ 11,810
10/31/2004 $ 15,897 $ 13,279 $ 11,872
11/30/2004 $ 16,868 $ 13,982 $ 11,878
12/31/2004 $ 17,433 $ 14,520 $ 11,835
1/31/2005 $ 17,007 $ 14,196 $ 11,859
2/28/2005 $ 17,761 $ 14,652 $ 11,928
3/31/2005 $ 17,487 $ 14,375 $ 12,021
4/30/2005 $ 17,129 $ 14,071 $ 12,102
5/31/2005 $ 17,197 $ 14,331 $ 12,090
6/30/2005 $ 17,426 $ 14,462 $ 12,096
7/31/2005 $ 17,875 $ 14,970 $ 12,152
8/31/2005 $ 18,149 $ 15,090 $ 12,214
9/30/2005 $ 18,507 $ 15,486 $ 12,363
10/31/2005 $ 17,880 $ 15,113 $ 12,388
11/30/2005 $ 18,225 $ 15,625 $ 12,289
12/31/2005 $ 18,854 $ 15,975 $ 12,239
1/31/2006 $ 19,552 $ 16,692 $ 12,332
2/28/2006 $ 19,569 $ 16,674 $ 12,357
3/31/2006 $ 19,897 $ 17,048 $ 12,425
4/30/2006 $ 20,596 $ 17,575 $ 12,531
5/31/2006 $ 20,062 $ 16,990 $ 12,593
6/30/2006 $ 20,062 $ 16,992 $ 12,618
7/31/2006 $ 20,308 $ 17,102 $ 12,655
8/31/2006 $ 20,785 $ 17,555 $ 12,680
9/30/2006 $ 21,204 $ 17,769 $ 12,618
10/31/2006 $ 21,862 $ 18,425 $ 12,550
11/30/2006 $ 22,458 $ 18,886 $ 12,531
12/31/2006 $ 22,966 $ 19,275 $ 12,550
1/31/2007 $ 23,207 $ 19,506 $ 12,588
2/28/2007 $ 22,831 $ 19,413 $ 12,655
3/31/2007 $ 23,127 $ 19,776 $ 12,771
4/30/2007 $ 24,165 $ 20,660 $ 12,854
5/31/2007 $ 24,657 $ 21,259 $ 12,932
6/30/2007 $ 24,550 $ 21,103 $ 12,957
7/31/2007 $ 23,691 $ 20,640 $ 12,954
8/31/2007 $ 23,404 $ 20,633 $ 12,930

AVERAGE ANNUAL TOTAL RETURN

- ------------------------------------
CLASS A 8/31/07
- ------------------------------------
1-Year +6.14%
- ------------------------------------
5-Year +13.39%
- ------------------------------------
10-Year +8.88%
- ------------------------------------

CLASS B (1/1/99-8/31/07)

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Date Templeton Growth Fund MSCI World Index 6 CPI 6
- ---------------------------------------------------------------------
1/1/1999 $ 10,000 $ 10,000 $ 10,000
1/31/1999 $ 9,927 $ 10,220 $ 10,024
2/28/1999 $ 9,847 $ 9,950 $ 10,037
3/31/1999 $ 10,525 $ 10,366 $ 10,067
4/30/1999 $ 11,820 $ 10,776 $ 10,140
5/31/1999 $ 11,387 $ 10,383 $ 10,140
6/30/1999 $ 11,906 $ 10,869 $ 10,140
7/31/1999 $ 11,888 $ 10,838 $ 10,171
8/31/1999 $ 11,888 $ 10,820 $ 10,195
9/30/1999 $ 11,454 $ 10,717 $ 10,244
10/31/1999 $ 11,463 $ 11,275 $ 10,262
11/30/1999 $ 11,962 $ 11,594 $ 10,268
12/31/1999 $ 12,945 $ 12,534 $ 10,268
1/31/2000 $ 12,044 $ 11,818 $ 10,299
2/29/2000 $ 11,633 $ 11,851 $ 10,360
3/31/2000 $ 12,468 $ 12,672 $ 10,445
4/30/2000 $ 12,299 $ 12,137 $ 10,451
5/31/2000 $ 12,521 $ 11,831 $ 10,464
6/30/2000 $ 12,579 $ 12,231 $ 10,519
7/31/2000 $ 12,481 $ 11,889 $ 10,543
8/31/2000 $ 12,697 $ 12,277 $ 10,543
9/30/2000 $ 12,305 $ 11,626 $ 10,598
10/31/2000 $ 12,408 $ 11,432 $ 10,616
11/30/2000 $ 12,324 $ 10,740 $ 10,622
12/31/2000 $ 13,070 $ 10,915 $ 10,616
1/31/2001 $ 13,242 $ 11,127 $ 10,683
2/28/2001 $ 13,056 $ 10,188 $ 10,726
3/31/2001 $ 12,439 $ 9,520 $ 10,750
4/30/2001 $ 12,934 $ 10,227 $ 10,793
5/31/2001 $ 13,185 $ 10,100 $ 10,842
6/30/2001 $ 12,926 $ 9,785 $ 10,860
7/31/2001 $ 12,876 $ 9,656 $ 10,830
8/31/2001 $ 12,812 $ 9,194 $ 10,830
9/30/2001 $ 11,715 $ 8,385 $ 10,879
10/31/2001 $ 12,091 $ 8,547 $ 10,842
11/30/2001 $ 12,848 $ 9,054 $ 10,824
12/31/2001 $ 13,049 $ 9,112 $ 10,781
1/31/2002 $ 12,749 $ 8,837 $ 10,805
2/28/2002 $ 12,998 $ 8,761 $ 10,848
3/31/2002 $ 13,474 $ 9,151 $ 10,909
4/30/2002 $ 13,547 $ 8,843 $ 10,970
5/31/2002 $ 13,818 $ 8,864 $ 10,970
6/30/2002 $ 13,240 $ 8,328 $ 10,976
7/31/2002 $ 12,332 $ 7,627 $ 10,988
8/31/2002 $ 12,332 $ 7,643 $ 11,025
9/30/2002 $ 10,978 $ 6,804 $ 11,043
10/31/2002 $ 11,534 $ 7,307 $ 11,062
11/30/2002 $ 12,276 $ 7,703 $ 11,062
12/31/2002 $ 11,722 $ 7,331 $ 11,037
1/31/2003 $ 11,484 $ 7,110 $ 11,086
2/28/2003 $ 11,082 $ 6,988 $ 11,171
3/31/2003 $ 10,821 $ 6,969 $ 11,239
4/30/2003 $ 11,841 $ 7,591 $ 11,214
5/31/2003 $ 12,764 $ 8,029 $ 11,196
6/30/2003 $ 12,987 $ 8,170 $ 11,208
7/31/2003 $ 13,277 $ 8,338 $ 11,220
8/31/2003 $ 13,575 $ 8,520 $ 11,263
9/30/2003 $ 13,612 $ 8,574 $ 11,300
10/31/2003 $ 14,179 $ 9,085 $ 11,287
11/30/2003 $ 14,519 $ 9,225 $ 11,257
12/31/2003 $ 15,450 $ 9,806 $ 11,245
1/31/2004 $ 15,769 $ 9,966 $ 11,300
2/29/2004 $ 16,155 $ 10,136 $ 11,361
3/31/2004 $ 15,898 $ 10,073 $ 11,434
4/30/2004 $ 15,746 $ 9,872 $ 11,470
5/31/2004 $ 15,822 $ 9,969 $ 11,538
6/30/2004 $ 16,102 $ 10,178 $ 11,574
7/31/2004 $ 15,579 $ 9,848 $ 11,556
8/31/2004 $ 15,648 $ 9,895 $ 11,562
9/30/2004 $ 16,011 $ 10,086 $ 11,586
10/31/2004 $ 16,390 $ 10,335 $ 11,647
11/30/2004 $ 17,376 $ 10,883 $ 11,653
12/31/2004 $ 17,950 $ 11,301 $ 11,611
1/31/2005 $ 17,496 $ 11,049 $ 11,635
2/28/2005 $ 18,261 $ 11,404 $ 11,702
3/31/2005 $ 17,966 $ 11,188 $ 11,794
4/30/2005 $ 17,592 $ 10,951 $ 11,873
5/31/2005 $ 17,648 $ 11,154 $ 11,861
6/30/2005 $ 17,878 $ 11,256 $ 11,867
7/31/2005 $ 18,324 $ 11,651 $ 11,922
8/31/2005 $ 18,595 $ 11,745 $ 11,983
9/30/2005 $ 18,946 $ 12,053 $ 12,129
10/31/2005 $ 18,289 $ 11,763 $ 12,154
11/30/2005 $ 18,640 $ 12,161 $ 12,056
12/31/2005 $ 19,273 $ 12,434 $ 12,007
1/31/2006 $ 19,973 $ 12,992 $ 12,099
2/28/2006 $ 19,973 $ 12,978 $ 12,123
3/31/2006 $ 20,298 $ 13,269 $ 12,190
4/30/2006 $ 20,998 $ 13,679 $ 12,294
5/31/2006 $ 20,443 $ 13,224 $ 12,355
6/30/2006 $ 20,426 $ 13,225 $ 12,379
7/31/2006 $ 20,665 $ 13,311 $ 12,416
8/31/2006 $ 21,134 $ 13,663 $ 12,441
9/30/2006 $ 21,544 $ 13,830 $ 12,379
10/31/2006 $ 22,206 $ 14,341 $ 12,312
11/30/2006 $ 22,795 $ 14,699 $ 12,294
12/31/2006 $ 23,301 $ 15,002 $ 12,312
1/31/2007 $ 23,546 $ 15,182 $ 12,350
2/28/2007 $ 23,164 $ 15,109 $ 12,416
3/31/2007 $ 23,463 $ 15,392 $ 12,529
4/30/2007 $ 24,517 $ 16,080 $ 12,610
5/31/2007 $ 25,017 $ 16,547 $ 12,688
6/30/2007 $ 24,907 $ 16,425 $ 12,712
7/31/2007 $ 24,035 $ 16,064 $ 12,709
8/31/2007 $ 23,746 $ 16,059 $ 12,686

AVERAGE ANNUAL TOTAL RETURN

- ------------------------------------
CLASS B 8/31/07
- ------------------------------------
1-Year +7.78%
- ------------------------------------
5-Year +13.65%
- ------------------------------------
Since Inception (1/1/99) +10.49%
- ------------------------------------

Annual Report | 9

Performance Summary (CONTINUED)

AVERAGE ANNUAL TOTAL RETURN

- ------------------------------------
CLASS C 8/31/07
- ------------------------------------
1-Year +10.78%
- ------------------------------------
5-Year +13.89%
- ------------------------------------
10-Year +8.71%
- ------------------------------------

CLASS C (9/1/97-8/31/07)

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Date Templeton Growth Fund MSCI World Index 6 CPI 6
- ---------------------------------------------------------------------
9/1/1997 $ 10,000 $ 10,000 $ 10,000
9/30/1997 $ 10,636 $ 10,545 $ 10,025
10/31/1997 $ 9,936 $ 9,991 $ 10,050
11/30/1997 $ 9,956 $ 10,170 $ 10,044
12/31/1997 $ 10,077 $ 10,295 $ 10,031
1/31/1998 $ 10,087 $ 10,584 $ 10,050
2/28/1998 $ 10,634 $ 11,302 $ 10,068
3/31/1998 $ 11,097 $ 11,781 $ 10,087
4/30/1998 $ 11,149 $ 11,897 $ 10,106
5/31/1998 $ 10,802 $ 11,750 $ 10,124
6/30/1998 $ 10,487 $ 12,031 $ 10,137
7/31/1998 $ 10,229 $ 12,013 $ 10,149
8/31/1998 $ 8,673 $ 10,413 $ 10,162
9/30/1998 $ 8,884 $ 10,599 $ 10,174
10/31/1998 $ 9,634 $ 11,559 $ 10,199
11/30/1998 $ 9,973 $ 12,248 $ 10,199
12/31/1998 $ 9,755 $ 12,848 $ 10,193
1/31/1999 $ 9,676 $ 13,131 $ 10,218
2/28/1999 $ 9,603 $ 12,784 $ 10,230
3/31/1999 $ 10,263 $ 13,318 $ 10,261
4/30/1999 $ 11,529 $ 13,845 $ 10,336
5/31/1999 $ 11,105 $ 13,341 $ 10,336
6/30/1999 $ 11,613 $ 13,965 $ 10,336
7/31/1999 $ 11,601 $ 13,925 $ 10,367
8/31/1999 $ 11,595 $ 13,902 $ 10,392
9/30/1999 $ 11,178 $ 13,769 $ 10,442
10/31/1999 $ 11,180 $ 14,487 $ 10,460
11/30/1999 $ 11,665 $ 14,896 $ 10,466
12/31/1999 $ 12,627 $ 16,104 $ 10,466
1/31/2000 $ 11,754 $ 15,184 $ 10,498
2/29/2000 $ 11,342 $ 15,226 $ 10,560
3/31/2000 $ 12,165 $ 16,281 $ 10,647
4/30/2000 $ 11,998 $ 15,594 $ 10,653
5/31/2000 $ 12,210 $ 15,201 $ 10,665
6/30/2000 $ 12,267 $ 15,715 $ 10,721
7/31/2000 $ 12,177 $ 15,275 $ 10,746
8/31/2000 $ 12,383 $ 15,774 $ 10,746
9/30/2000 $ 11,998 $ 14,937 $ 10,802
10/31/2000 $ 12,106 $ 14,688 $ 10,821
11/30/2000 $ 12,023 $ 13,798 $ 10,827
12/31/2000 $ 12,748 $ 14,024 $ 10,821
1/31/2001 $ 12,917 $ 14,296 $ 10,889
2/28/2001 $ 12,734 $ 13,089 $ 10,933
3/31/2001 $ 12,135 $ 12,232 $ 10,958
4/30/2001 $ 12,614 $ 13,139 $ 11,001
5/31/2001 $ 12,861 $ 12,976 $ 11,051
6/30/2001 $ 12,614 $ 12,571 $ 11,070
7/31/2001 $ 12,558 $ 12,406 $ 11,039
8/31/2001 $ 12,494 $ 11,813 $ 11,039
9/30/2001 $ 11,423 $ 10,773 $ 11,088
10/31/2001 $ 11,793 $ 10,981 $ 11,051
11/30/2001 $ 12,537 $ 11,632 $ 11,032
12/31/2001 $ 12,725 $ 11,707 $ 10,989
1/31/2002 $ 12,438 $ 11,353 $ 11,014
2/28/2002 $ 12,682 $ 11,257 $ 11,057
3/31/2002 $ 13,142 $ 11,757 $ 11,119
4/30/2002 $ 13,214 $ 11,362 $ 11,182
5/31/2002 $ 13,479 $ 11,388 $ 11,182
6/30/2002 $ 12,912 $ 10,700 $ 11,188
7/31/2002 $ 12,028 $ 9,799 $ 11,200
8/31/2002 $ 12,028 $ 9,819 $ 11,238
9/30/2002 $ 10,706 $ 8,742 $ 11,256
10/31/2002 $ 11,249 $ 9,388 $ 11,275
11/30/2002 $ 11,976 $ 9,897 $ 11,275
12/31/2002 $ 11,431 $ 9,419 $ 11,250
1/31/2003 $ 11,198 $ 9,134 $ 11,300
2/28/2003 $ 10,811 $ 8,978 $ 11,387
3/31/2003 $ 10,556 $ 8,953 $ 11,455
4/30/2003 $ 11,548 $ 9,753 $ 11,430
5/31/2003 $ 12,452 $ 10,315 $ 11,412
6/30/2003 $ 12,671 $ 10,498 $ 11,424
7/31/2003 $ 12,948 $ 10,713 $ 11,437
8/31/2003 $ 13,240 $ 10,947 $ 11,480
9/30/2003 $ 13,277 $ 11,016 $ 11,517
10/31/2003 $ 13,829 $ 11,672 $ 11,505
11/30/2003 $ 14,162 $ 11,853 $ 11,474
12/31/2003 $ 15,073 $ 12,599 $ 11,461
1/31/2004 $ 15,378 $ 12,804 $ 11,517
2/29/2004 $ 15,764 $ 13,023 $ 11,580
3/31/2004 $ 15,511 $ 12,942 $ 11,654
4/30/2004 $ 15,363 $ 12,684 $ 11,692
5/31/2004 $ 15,437 $ 12,808 $ 11,760
6/30/2004 $ 15,704 $ 13,077 $ 11,797
7/31/2004 $ 15,200 $ 12,653 $ 11,779
8/31/2004 $ 15,266 $ 12,714 $ 11,785
9/30/2004 $ 15,623 $ 12,958 $ 11,810
10/31/2004 $ 15,988 $ 13,279 $ 11,872
11/30/2004 $ 16,946 $ 13,982 $ 11,878
12/31/2004 $ 17,508 $ 14,520 $ 11,835
1/31/2005 $ 17,063 $ 14,196 $ 11,859
2/28/2005 $ 17,812 $ 14,652 $ 11,928
3/31/2005 $ 17,523 $ 14,375 $ 12,021
4/30/2005 $ 17,157 $ 14,071 $ 12,102
5/31/2005 $ 17,219 $ 14,331 $ 12,090
6/30/2005 $ 17,438 $ 14,462 $ 12,096
7/31/2005 $ 17,874 $ 14,970 $ 12,152
8/31/2005 $ 18,132 $ 15,090 $ 12,214
9/30/2005 $ 18,483 $ 15,486 $ 12,363
10/31/2005 $ 17,844 $ 15,113 $ 12,388
11/30/2005 $ 18,180 $ 15,625 $ 12,289
12/31/2005 $ 18,793 $ 15,975 $ 12,239
1/31/2006 $ 19,479 $ 16,692 $ 12,332
2/28/2006 $ 19,479 $ 16,674 $ 12,357
3/31/2006 $ 19,797 $ 17,048 $ 12,425
4/30/2006 $ 20,475 $ 17,575 $ 12,531
5/31/2006 $ 19,940 $ 16,990 $ 12,593
6/30/2006 $ 19,923 $ 16,992 $ 12,618
7/31/2006 $ 20,157 $ 17,102 $ 12,655
8/31/2006 $ 20,618 $ 17,555 $ 12,680
9/30/2006 $ 21,020 $ 17,769 $ 12,618
10/31/2006 $ 21,661 $ 18,425 $ 12,550
11/30/2006 $ 22,239 $ 18,886 $ 12,531
12/31/2006 $ 22,729 $ 19,275 $ 12,550
1/31/2007 $ 22,947 $ 19,506 $ 12,588
2/28/2007 $ 22,565 $ 19,413 $ 12,655
3/31/2007 $ 22,847 $ 19,776 $ 12,771
4/30/2007 $ 23,854 $ 20,660 $ 12,854
5/31/2007 $ 24,326 $ 21,259 $ 12,932
6/30/2007 $ 24,199 $ 21,103 $ 12,957
7/31/2007 $ 23,337 $ 20,640 $ 12,954
8/31/2007 $ 23,046 $ 20,633 $ 12,930

AVERAGE ANNUAL TOTAL RETURN

- ------------------------------------
CLASS R 8/31/07
- ------------------------------------
1-Year +12.33%
- ------------------------------------
5-Year +14.44%
- ------------------------------------
Since Inception (1/1/02) +11.54%
- ------------------------------------

CLASS R (1/1/02-8/31/07)

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Date Templeton Growth Fund MSCI World Index 6 CPI 6
- ---------------------------------------------------------------------
1/1/2002 $ 10,000 $ 10,000 $ 10,000
1/31/2002 $ 9,745 $ 9,698 $ 10,023
2/28/2002 $ 9,944 $ 9,616 $ 10,062
3/31/2002 $ 10,309 $ 10,043 $ 10,119
4/30/2002 $ 10,365 $ 9,705 $ 10,175
5/31/2002 $ 10,581 $ 9,728 $ 10,175
6/30/2002 $ 10,144 $ 9,140 $ 10,181
7/31/2002 $ 9,446 $ 8,370 $ 10,192
8/31/2002 $ 9,451 $ 8,388 $ 10,226
9/30/2002 $ 8,416 $ 7,467 $ 10,243
10/31/2002 $ 8,846 $ 8,020 $ 10,260
11/30/2002 $ 9,416 $ 8,454 $ 10,260
12/31/2002 $ 8,995 $ 8,046 $ 10,238
1/31/2003 $ 8,813 $ 7,803 $ 10,283
2/28/2003 $ 8,512 $ 7,669 $ 10,362
3/31/2003 $ 8,314 $ 7,648 $ 10,424
4/30/2003 $ 9,102 $ 8,331 $ 10,402
5/31/2003 $ 9,816 $ 8,811 $ 10,385
6/30/2003 $ 9,992 $ 8,967 $ 10,396
7/31/2003 $ 10,218 $ 9,151 $ 10,407
8/31/2003 $ 10,451 $ 9,351 $ 10,447
9/30/2003 $ 10,484 $ 9,410 $ 10,481
10/31/2003 $ 10,927 $ 9,970 $ 10,470
11/30/2003 $ 11,193 $ 10,125 $ 10,441
12/31/2003 $ 11,922 $ 10,762 $ 10,430
1/31/2004 $ 12,165 $ 10,937 $ 10,481
2/29/2004 $ 12,472 $ 11,124 $ 10,538
3/31/2004 $ 12,281 $ 11,055 $ 10,606
4/30/2004 $ 12,165 $ 10,835 $ 10,640
5/31/2004 $ 12,229 $ 10,941 $ 10,702
6/30/2004 $ 12,449 $ 11,170 $ 10,736
7/31/2004 $ 12,055 $ 10,808 $ 10,719
8/31/2004 $ 12,107 $ 10,860 $ 10,724
9/30/2004 $ 12,397 $ 11,069 $ 10,747
10/31/2004 $ 12,693 $ 11,343 $ 10,804
11/30/2004 $ 13,460 $ 11,944 $ 10,809
12/31/2004 $ 13,911 $ 12,403 $ 10,770
1/31/2005 $ 13,568 $ 12,126 $ 10,792
2/28/2005 $ 14,168 $ 12,516 $ 10,855
3/31/2005 $ 13,948 $ 12,279 $ 10,939
4/30/2005 $ 13,660 $ 12,019 $ 11,013
5/31/2005 $ 13,710 $ 12,242 $ 11,002
6/30/2005 $ 13,893 $ 12,353 $ 11,007
7/31/2005 $ 14,247 $ 12,788 $ 11,058
8/31/2005 $ 14,461 $ 12,890 $ 11,115
9/30/2005 $ 14,742 $ 13,228 $ 11,251
10/31/2005 $ 14,238 $ 12,910 $ 11,273
11/30/2005 $ 14,515 $ 13,347 $ 11,183
12/31/2005 $ 15,008 $ 13,646 $ 11,138
1/31/2006 $ 15,562 $ 14,258 $ 11,222
2/28/2006 $ 15,568 $ 14,243 $ 11,245
3/31/2006 $ 15,832 $ 14,563 $ 11,307
4/30/2006 $ 16,380 $ 15,013 $ 11,404
5/31/2006 $ 15,951 $ 14,513 $ 11,460
6/30/2006 $ 15,951 $ 14,515 $ 11,483
7/31/2006 $ 16,142 $ 14,609 $ 11,517
8/31/2006 $ 16,518 $ 14,995 $ 11,539
9/30/2006 $ 16,847 $ 15,179 $ 11,483
10/31/2006 $ 17,369 $ 15,739 $ 11,420
11/30/2006 $ 17,840 $ 16,132 $ 11,404
12/31/2006 $ 18,239 $ 16,465 $ 11,420
1/31/2007 $ 18,426 $ 16,662 $ 11,455
2/28/2007 $ 18,125 $ 16,582 $ 11,517
3/31/2007 $ 18,354 $ 16,893 $ 11,622
4/30/2007 $ 19,179 $ 17,648 $ 11,697
5/31/2007 $ 19,566 $ 18,160 $ 11,768
6/30/2007 $ 19,473 $ 18,026 $ 11,791
7/31/2007 $ 18,784 $ 17,631 $ 11,788
8/31/2007 $ 18,556 $ 17,625 $ 11,767

10 | Annual Report

Performance Summary (CONTINUED)

ADVISOR CLASS (9/1/97-8/31/07)

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Date Templeton Growth Fund MSCI World Index 6 CPI 6
- ---------------------------------------------------------------------
9/1/1997 $ 10,000 $ 10,000 $ 10,000
9/30/1997 $ 10,645 $ 10,545 $ 10,025
10/31/1997 $ 9,959 $ 9,991 $ 10,050
11/30/1997 $ 9,989 $ 10,170 $ 10,044
12/31/1997 $ 10,115 $ 10,295 $ 10,031
1/31/1998 $ 10,136 $ 10,584 $ 10,050
2/28/1998 $ 10,694 $ 11,302 $ 10,068
3/31/1998 $ 11,168 $ 11,781 $ 10,087
4/30/1998 $ 11,231 $ 11,897 $ 10,106
5/31/1998 $ 10,887 $ 11,750 $ 10,124
6/30/1998 $ 10,579 $ 12,031 $ 10,137
7/31/1998 $ 10,329 $ 12,013 $ 10,149
8/31/1998 $ 8,759 $ 10,413 $ 10,162
9/30/1998 $ 8,984 $ 10,599 $ 10,174
10/31/1998 $ 9,750 $ 11,559 $ 10,199
11/30/1998 $ 10,101 $ 12,248 $ 10,199
12/31/1998 $ 9,889 $ 12,848 $ 10,193
1/31/1999 $ 9,823 $ 13,131 $ 10,218
2/28/1999 $ 9,750 $ 12,784 $ 10,230
3/31/1999 $ 10,433 $ 13,318 $ 10,261
4/30/1999 $ 11,731 $ 13,845 $ 10,336
5/31/1999 $ 11,314 $ 13,341 $ 10,336
6/30/1999 $ 11,839 $ 13,965 $ 10,336
7/31/1999 $ 11,833 $ 13,925 $ 10,367
8/31/1999 $ 11,839 $ 13,902 $ 10,392
9/30/1999 $ 11,423 $ 13,769 $ 10,442
10/31/1999 $ 11,431 $ 14,487 $ 10,460
11/30/1999 $ 11,944 $ 14,896 $ 10,466
12/31/1999 $ 12,940 $ 16,104 $ 10,466
1/31/2000 $ 12,052 $ 15,184 $ 10,498
2/29/2000 $ 11,644 $ 15,226 $ 10,560
3/31/2000 $ 12,493 $ 16,281 $ 10,647
4/30/2000 $ 12,331 $ 15,594 $ 10,653
5/31/2000 $ 12,564 $ 15,201 $ 10,665
6/30/2000 $ 12,629 $ 15,715 $ 10,721
7/31/2000 $ 12,544 $ 15,275 $ 10,746
8/31/2000 $ 12,778 $ 15,774 $ 10,746
9/30/2000 $ 12,389 $ 14,937 $ 10,802
10/31/2000 $ 12,505 $ 14,688 $ 10,821
11/30/2000 $ 12,428 $ 13,798 $ 10,827
12/31/2000 $ 13,193 $ 14,024 $ 10,821
1/31/2001 $ 13,379 $ 14,296 $ 10,889
2/28/2001 $ 13,200 $ 13,089 $ 10,933
3/31/2001 $ 12,590 $ 12,232 $ 10,958
4/30/2001 $ 13,092 $ 13,139 $ 11,001
5/31/2001 $ 13,365 $ 12,976 $ 11,051
6/30/2001 $ 13,114 $ 12,571 $ 11,070
7/31/2001 $ 13,071 $ 12,406 $ 11,039
8/31/2001 $ 13,021 $ 11,813 $ 11,039
9/30/2001 $ 11,909 $ 10,773 $ 11,088
10/31/2001 $ 12,309 $ 10,981 $ 11,051
11/30/2001 $ 13,093 $ 11,632 $ 11,032
12/31/2001 $ 13,306 $ 11,707 $ 10,989
1/31/2002 $ 13,010 $ 11,353 $ 11,014
2/28/2002 $ 13,276 $ 11,257 $ 11,057
3/31/2002 $ 13,771 $ 11,757 $ 11,119
4/30/2002 $ 13,853 $ 11,362 $ 11,182
5/31/2002 $ 14,148 $ 11,388 $ 11,182
6/30/2002 $ 13,565 $ 10,700 $ 11,188
7/31/2002 $ 12,641 $ 9,799 $ 11,200
8/31/2002 $ 12,656 $ 9,819 $ 11,238
9/30/2002 $ 11,274 $ 8,742 $ 11,256
10/31/2002 $ 11,859 $ 9,388 $ 11,275
11/30/2002 $ 12,627 $ 9,897 $ 11,275
12/31/2002 $ 12,071 $ 9,419 $ 11,250
1/31/2003 $ 11,829 $ 9,134 $ 11,300
2/28/2003 $ 11,435 $ 8,978 $ 11,387
3/31/2003 $ 11,177 $ 8,953 $ 11,455
4/30/2003 $ 12,230 $ 9,753 $ 11,430
5/31/2003 $ 13,200 $ 10,315 $ 11,412
6/30/2003 $ 13,443 $ 10,498 $ 11,424
7/31/2003 $ 13,746 $ 10,713 $ 11,437
8/31/2003 $ 14,072 $ 10,947 $ 11,480
9/30/2003 $ 14,125 $ 11,016 $ 11,517
10/31/2003 $ 14,724 $ 11,672 $ 11,505
11/30/2003 $ 15,087 $ 11,853 $ 11,474
12/31/2003 $ 16,073 $ 12,599 $ 11,461
1/31/2004 $ 16,415 $ 12,804 $ 11,517
2/29/2004 $ 16,835 $ 13,023 $ 11,580
3/31/2004 $ 16,578 $ 12,942 $ 11,654
4/30/2004 $ 16,430 $ 12,684 $ 11,692
5/31/2004 $ 16,524 $ 12,808 $ 11,760
6/30/2004 $ 16,827 $ 13,077 $ 11,797
7/31/2004 $ 16,298 $ 12,653 $ 11,779
8/31/2004 $ 16,384 $ 12,714 $ 11,785
9/30/2004 $ 16,780 $ 12,958 $ 11,810
10/31/2004 $ 17,191 $ 13,279 $ 11,872
11/30/2004 $ 18,240 $ 13,982 $ 11,878
12/31/2004 $ 18,849 $ 14,520 $ 11,835
1/31/2005 $ 18,396 $ 14,196 $ 11,859
2/28/2005 $ 19,212 $ 14,652 $ 11,928
3/31/2005 $ 18,923 $ 14,375 $ 12,021
4/30/2005 $ 18,536 $ 14,071 $ 12,102
5/31/2005 $ 18,619 $ 14,331 $ 12,090
6/30/2005 $ 18,866 $ 14,462 $ 12,096
7/31/2005 $ 19,360 $ 14,970 $ 12,152
8/31/2005 $ 19,656 $ 15,090 $ 12,214
9/30/2005 $ 20,052 $ 15,486 $ 12,363
10/31/2005 $ 19,371 $ 15,113 $ 12,388
11/30/2005 $ 19,754 $ 15,625 $ 12,289
12/31/2005 $ 20,442 $ 15,975 $ 12,239
1/31/2006 $ 21,208 $ 16,692 $ 12,332
2/28/2006 $ 21,226 $ 16,674 $ 12,357
3/31/2006 $ 21,591 $ 17,048 $ 12,425
4/30/2006 $ 22,348 $ 17,575 $ 12,531
5/31/2006 $ 21,778 $ 16,990 $ 12,593
6/30/2006 $ 21,778 $ 16,992 $ 12,618
7/31/2006 $ 22,054 $ 17,102 $ 12,655
8/31/2006 $ 22,571 $ 17,555 $ 12,680
9/30/2006 $ 23,034 $ 17,769 $ 12,618
10/31/2006 $ 23,756 $ 18,425 $ 12,550
11/30/2006 $ 24,413 $ 18,886 $ 12,531
12/31/2006 $ 24,964 $ 19,275 $ 12,550
1/31/2007 $ 25,236 $ 19,506 $ 12,588
2/28/2007 $ 24,827 $ 19,413 $ 12,655
3/31/2007 $ 25,158 $ 19,776 $ 12,771
4/30/2007 $ 26,286 $ 20,660 $ 12,854
5/31/2007 $ 26,830 $ 21,259 $ 12,932
6/30/2007 $ 26,723 $ 21,103 $ 12,957
7/31/2007 $ 25,790 $ 20,640 $ 12,954
8/31/2007 $ 25,489 $ 20,633 $ 12,930

AVERAGE ANNUAL TOTAL RETURN

- ------------------------------------
ADVISOR CLASS 8/31/07
- ------------------------------------
1-Year +12.93%
- ------------------------------------
5-Year +15.03%
- ------------------------------------
10-Year +9.81%
- ------------------------------------

ENDNOTES

SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING CURRENCY
FLUCTUATIONS, ECONOMIC INSTABILITY AND POLITICAL DEVELOPMENTS. INVESTMENTS IN
DEVELOPING MARKETS INVOLVE HEIGHTENED RISKS RELATED TO THE SAME FACTORS, IN
ADDITION TO THOSE ASSOCIATED WITH THESE MARKETS' SMALLER SIZE AND LESSER
LIQUIDITY. THE FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN
INVESTMENT RISKS.

CLASS B: These shares have higher annual fees and expenses than Class A
shares.

CLASS C: Prior to 1/1/04, these shares were offered with an initial sales
charge; thus actual total returns would have differed. These
shares have higher annual fees and expenses than Class A shares.

CLASS R: Shares are available to certain eligible investors as
described in the prospectus. These shares have higher annual
fees and expenses than Class A shares.

ADVISOR CLASS: Shares are available to certain eligible investors as described
in the prospectus.

1. Cumulative total return represents the change in value of an investment over
the periods indicated.

2. Average annual total return represents the average annual change in value of
an investment over the periods indicated.

3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated.

4. In accordance with SEC rules, we provide standardized average annual total
return information through the latest calendar quarter.

5. Figures are as stated in the Fund's prospectus current as of the date of this
report.

6. Source: Standard & Poor's Micropal. The MSCI World Index is a free
float-adjusted, market capitalization-weighted index designed to measure equity
market performance in global developed markets. The Consumer Price Index (CPI),
calculated by the U.S. Bureau of Labor Statistics, is a commonly used measure of
the inflation rate.

Annual Report | 11

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs:

o Transaction costs, including sales charges (loads) on Fund purchases and
redemption fees; and

o Ongoing Fund costs, including management fees, distribution and service
(12b-1) fees, and other Fund expenses. All mutual funds have ongoing
costs, sometimes referred to as operating expenses.

The following table shows ongoing costs of investing in the Fund and can help
you understand these costs and compare them with those of other mutual funds.
The table assumes a $1,000 investment held for the six months indicated.

ACTUAL FUND EXPENSES

The first line (Actual) for each share class listed in the table provides actual
account values and expenses. The "Ending Account Value" is derived from the
Fund's actual return, which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.
IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."
IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Information in the second line (Hypothetical) for each class in the table can
help you compare ongoing costs of investing in the Fund with those of other
mutual funds. This information may not be used to estimate the actual ending
account balance or expenses you paid during the period. The hypothetical "Ending
Account Value" is based on the actual expense ratio for each class and an
assumed 5% annual rate of return before expenses, which does not represent the
Fund's actual return. The figure under the heading "Expenses Paid During Period"
shows the hypothetical expenses your account would have incurred under this
scenario. You can compare this figure with the 5% hypothetical examples that
appear in shareholder reports of other funds.

12 | Annual Report

Your Fund's Expenses (CONTINUED)

PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING
COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES OR
REDEMPTION FEES. Therefore, the second line for each class is useful in
comparing ongoing costs only, and will not help you compare total costs of
owning different funds. In addition, if transaction costs were included, your
total costs would have been higher. Please refer to the Fund prospectus for
additional information on operating expenses.

- ----------------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
CLASS A VALUE 3/1/07 VALUE 8/31/07 PERIOD* 3/1/07-8/31/07
- ----------------------------------------------------------------------------------------------------------------

Actual $1,000 $1,025.10 $5.10
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,020.16 $5.09
- ----------------------------------------------------------------------------------------------------------------
CLASS B
- ----------------------------------------------------------------------------------------------------------------
Actual $1,000 $1,021.20 $8.92
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,016.38 $8.89
- ----------------------------------------------------------------------------------------------------------------
CLASS C
- ----------------------------------------------------------------------------------------------------------------
Actual $1,000 $1,021.30 $8.92
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,016.38 $8.89
- ----------------------------------------------------------------------------------------------------------------
CLASS R
- ----------------------------------------------------------------------------------------------------------------
Actual $1,000 $1,023.70 $6.38
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,018.90 $6.36
- ----------------------------------------------------------------------------------------------------------------
ADVISOR CLASS
- ----------------------------------------------------------------------------------------------------------------
Actual $1,000 $1,026.60 $3.83
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,021.42 $3.82
- ----------------------------------------------------------------------------------------------------------------

* Expenses are calculated using the most recent six-month expense ratio,
annualized for each class (A: 1.00%; B: 1.75%; C: 1.75%; R: 1.25%; and Advisor:
0.75%), multiplied by the average account value over the period, multiplied by
184/365 to reflect the one-half year period.

Annual Report | 13

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS

-----------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
CLASS A 2007 2006 2005 2004 2003
-----------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ............. $ 25.29 $ 23.86 $ 21.03 $ 18.54 $ 17.10
-----------------------------------------------------------------------------
Income from investment operations a:
Net investment income b ..................... 0.37 0.43 0.36 0.36 0.34
Net realized and unrealized gains (losses)... 2.66 2.73 3.66 2.58 1.46
-----------------------------------------------------------------------------
Total from investment operations ............... 3.03 3.16 4.02 2.94 1.80
-----------------------------------------------------------------------------
Less distributions from:
Net investment income ....................... (0.49) (0.41) (0.41) (0.45) (0.36)
Net realized gains .......................... (1.68) (1.32) (0.78) -- --
-----------------------------------------------------------------------------
Total distributions ............................ (2.17) (1.73) (1.19) (0.45) (0.36)
-----------------------------------------------------------------------------
Redemption fees ................................ -- d -- d -- d -- d -- d
-----------------------------------------------------------------------------
Net asset value, end of year ................... $ 26.15 $ 25.29 $ 23.86 $ 21.03 $ 18.54
=============================================================================

Total return c ................................. 12.60% 14.52% 19.72% 16.14% 10.90%

RATIOS TO AVERAGE NET ASSETS
Expenses ....................................... 1.01% e 1.05% e 1.06% e 1.10% e 1.13%
Net investment income .......................... 1.44% 1.82% 1.61% 1.75% 2.05%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ................ $27,997,564 $23,966,739 $20,786,173 $15,771,174 $13,021,261
Portfolio turnover rate ........................ 20.37% 35.33% 19.95% 24.58% 32.12%

a The amount shown for a share outstanding throughout the period may not
correlate with the statement of operations for the period due to timing of sales
and repurchase of the fund shares in relation to income earned and/or
fluctuating market value of the investments of the fund.

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred sales
charges, if applicable.

d Amount rounds to less than $0.01 per share.

e Benefit of expense reduction rounds to less than 0.01%.

14 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

------------------------------------------------------------------
YEAR ENDED AUGUST 31,
CLASS B 2007 2006 2005 2004 2003
------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ............. $ 24.75 $ 23.37 $ 20.64 $ 18.24 $ 16.85
------------------------------------------------------------------
Income from investment operations a:
Net investment income b ..................... 0.17 0.24 0.19 0.21 0.22
Net realized and unrealized gains (losses)... 2.61 2.70 3.59 2.54 1.43
------------------------------------------------------------------
Total from investment operations ............... 2.78 2.94 3.78 2.75 1.65
------------------------------------------------------------------
Less distributions from:
Net investment income ....................... (0.30) (0.24) (0.27) (0.35) (0.26)
Net realized gains .......................... (1.68) (1.32) (0.78) -- --
------------------------------------------------------------------
Total distributions ............................ (1.98) (1.56) (1.05) (0.35) (0.26)
------------------------------------------------------------------
Redemption fees ................................ -- d -- d -- d -- d -- d
------------------------------------------------------------------
Net asset value, end of year ................... $ 25.55 $ 24.75 $ 23.37 $ 20.64 $ 18.24
==================================================================

Total return c ................................. 11.78% 13.65% 18.84% 15.27% 10.08%

RATIOS TO AVERAGE NET ASSETS
Expenses ....................................... 1.76% e 1.79% e 1.81% e 1.85% e 1.88%
Net investment income .......................... 0.69% 1.08% 0.86% 1.00% 1.30%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ................ $563,335 $580,530 $557,670 $433,467 $278,340
Portfolio turnover rate ........................ 20.37% 35.33% 19.95% 24.58% 32.12%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred sales
charges, if applicable.

d Amount rounds to less than $0.01 per share.

e Benefit of expense reduction rounds to less than 0.01%.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 15

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

----------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
CLASS C 2007 2006 2005 2004 2003
----------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ............. $ 24.63 $ 23.28 $ 20.56 $ 18.15 $ 16.74
----------------------------------------------------------------------------
Income from investment operations a:
Net investment income b ..................... 0.17 0.25 0.19 0.20 0.21
Net realized and unrealized gains (losses)... 2.60 2.67 3.57 2.54 1.44
----------------------------------------------------------------------------
Total from investment operations ............... 2.77 2.92 3.76 2.74 1.65
----------------------------------------------------------------------------
Less distributions from:
Net investment income ....................... (0.32) (0.25) (0.26) (0.33) (0.24)
Net realized gains .......................... (1.68) (1.32) (0.78) -- --
----------------------------------------------------------------------------
Total distributions ............................ (2.00) (1.57) (1.04) (0.33) (0.24)
----------------------------------------------------------------------------
Redemption fees ................................ -- d -- d -- d -- d -- d
----------------------------------------------------------------------------
Net asset value, end of year ................... $ 25.40 $ 24.63 $ 23.28 $ 20.56 $ 18.15
============================================================================

Total return c ................................. 11.78% 13.71% 18.77% 15.30% 10.08%

RATIOS TO AVERAGE NET ASSETS
Expenses ....................................... 1.76% e 1.79% e 1.81% e 1.85% e 1.88%
Net investment income .......................... 0.69% 1.08% 0.86% 1.00% 1.30%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ................ $2,759,141 $2,362,844 $1,965,909 $1,394,289 $1,064,405
Portfolio turnover rate ........................ 20.37% 35.33% 19.95% 24.58% 32.12%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred sales
charges, if applicable.

d Amount rounds to less than $0.01 per share.

e Benefit of expense reduction rounds to less than 0.01%.

16 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

------------------------------------------------------------------
YEAR ENDED AUGUST 31,
CLASS R 2007 2006 2005 2004 2003
------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ............. $ 25.06 $ 23.68 $ 20.90 $ 18.44 $ 17.07
------------------------------------------------------------------
Income from investment operations a:
Net investment income b ..................... 0.31 0.45 0.32 0.33 0.32
Net realized and unrealized gains (losses)... 2.63 2.62 3.62 2.56 1.42
------------------------------------------------------------------
Total from investment operations ............... 2.94 3.07 3.94 2.89 1.74
------------------------------------------------------------------
Less distributions from:
Net investment income ....................... (0.44) (0.37) (0.38) (0.43) (0.37)
Net realized gains .......................... (1.68) (1.32) (0.78) -- --
------------------------------------------------------------------
Total distributions ............................ (2.12) (1.69) (1.16) (0.43) (0.37)
------------------------------------------------------------------
Redemption fees ................................ -- d -- d -- d -- d -- d
------------------------------------------------------------------
Net asset value, end of year ................... $ 25.88 $ 25.06 $ 23.68 $ 20.90 $ 18.44
==================================================================

Total return c ................................. 12.33% 14.22% 19.44% 15.85% 10.58%

RATIOS TO AVERAGE NET ASSETS
Expenses ....................................... 1.26% e 1.30% e 1.31% e 1.35% e 1.39%
Net investment income .......................... 1.19% 1.57% 1.36% 1.50% 1.79%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ................ $467,391 $403,334 $123,139 $ 57,951 $ 28,584
Portfolio turnover rate ........................ 20.37% 35.33% 19.95% 24.58% 32.12%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred sales
charges, if applicable, and is not annualized for periods less than one year.

d Amount rounds to less than $0.01 per share.

e Benefit of expense reduction rounds to less than 0.01%.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 17

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
ADVISOR CLASS 2007 2006 2005 2004 2003
------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ............. $ 25.34 $ 23.90 $ 21.07 $ 18.57 $ 17.13
------------------------------------------------------------------------
Income from investment operations a:
Net investment income b ..................... 0.45 0.51 0.45 0.48 0.38
Net realized and unrealized gains (losses)... 2.66 2.72 3.63 2.52 1.46
------------------------------------------------------------------------
Total from investment operations ............... 3.11 3.23 4.08 3.00 1.84
------------------------------------------------------------------------
Less distributions from:
Net investment income ....................... (0.55) (0.47) (0.47) (0.50) (0.40)
Net realized gains .......................... (1.68) (1.32) (0.78) -- --
------------------------------------------------------------------------
Total distributions ............................ (2.23) (1.79) (1.25) (0.50) (0.40)
------------------------------------------------------------------------
Redemption fees ................................ -- c -- c -- c -- c -- c
------------------------------------------------------------------------
Net asset value, end of year ................... $ 26.22 $ 25.34 $ 23.90 $ 21.07 $ 18.57
========================================================================

Total return ................................... 12.93% 14.83% 19.97% 16.43% 11.19%

RATIOS TO AVERAGE NET ASSETS
Expenses ....................................... 0.76% d 0.80% d 0.81% d 0.85% d 0.88%
Net investment income .......................... 1.69% 2.07% 1.86% 2.00% 2.30%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ................ $6,458,094 $3,972,615 $2,549,202 $911,764 $137,776
Portfolio turnover rate ........................ 20.37% 35.33% 19.95% 24.58% 32.12%

b Based on average daily shares outstanding.

c Amount rounds to less than $0.01 per share.

d Benefit of expense reduction rounds to less than 0.01%.

18 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, AUGUST 31, 2007

- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

COMMON STOCKS 97.0%
AUSTRIA 0.1%
Telekom Austria AG .............................. Diversified Telecommunication Services 1,301,090 $ 33,537,688
------------------
BERMUDA 0.5%
ACE Ltd. ........................................ Insurance 3,700,000 213,712,000
------------------
CANADA 0.4%
BCE Inc. ........................................ Diversified Telecommunication Services 4,000,000 153,006,914
------------------
FINLAND 1.6%
Stora Enso OYJ, R ............................... Paper & Forest Products 19,000,000 338,583,660
UPM-Kymmene OYJ ................................. Paper & Forest Products 13,000,000 294,537,266
------------------
633,120,926
------------------
FRANCE 6.8%
Accor SA ........................................ Hotels, Restaurants & Leisure 3,000,000 257,534,481
France Telecom SA ............................... Diversified Telecommunication Services 14,000,000 422,289,519
Peugeot SA ...................................... Automobiles 6,000,000 510,900,018
Sanofi-Aventis .................................. Pharmaceuticals 7,000,000 571,445,076
Total SA, B ..................................... Oil, Gas & Consumable Fuels 5,700,000 429,053,835
Vivendi SA ...................................... Media 10,000,000 408,856,254
------------------
2,600,079,183
------------------
GERMANY 6.5%
Bayerische Motoren Werke AG ..................... Automobiles 10,000,000 611,445,141
Deutsche Post AG ................................ Air Freight & Logistics 15,000,000 435,899,895
a Infineon Technologies AG ........................ Semiconductors & Semiconductor Equipment 15,000,000 233,992,208
Muenchener Rueckversicherungs-
Gesellschaft AG .............................. Insurance 1,924,280 333,210,338
Siemens AG ...................................... Industrial Conglomerates 7,000,000 881,104,983
------------------
2,495,652,565
------------------
HONG KONG 1.1%
Cheung Kong (Holdings) Ltd. ..................... Real Estate Management & Development 14,000,800 205,945,606
Hong Kong Electric Holdings Ltd. ................ Electric Utilities 20,000,000 100,286,625
Swire Pacific Ltd., A ........................... Real Estate Management & Development 9,190,000 101,591,890
------------------
407,824,121
------------------
ITALY 4.6%
Eni SpA ......................................... Oil, Gas & Consumable Fuels 9,000,000 311,199,419
Intesa Sanpaolo SpA ............................. Commercial Banks 90,000,000 678,066,503
Mediaset SpA .................................... Media 20,000,000 212,261,927
UniCredito Italiano SpA ......................... Commercial Banks 65,000,000 557,017,260
------------------
1,758,545,109
------------------
JAPAN 5.3%
FUJIFILM Holdings Corp. ......................... Leisure Equipment & Products 8,000,000 348,216,599
Hitachi Ltd. .................................... Electronic Equipment & Instruments 24,000,000 155,039,295
Konica Minolta Holdings Ltd. .................... Office Electronics 20,000,000 314,016,755

Annual Report | 19

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, AUGUST 31, 2007 (CONTINUED)

COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
Mitsubishi UFJ Financial Group Inc. ............. Commercial Banks 50,000 $ 479,316,003
Nomura Holdings Inc. ............................ Capital Markets 7,000,067 123,932,441
Shinsei Bank Ltd. ............................... Commercial Banks 60,000,000 200,535,452
Sumitomo Mitsui Financial Group Inc. ............ Commercial Banks 50,000 395,111,841
------------------
2,016,168,386
------------------
MEXICO 0.5%
Telefonos de Mexico SA de CV, L, ADR ............ Diversified Telecommunication Services 5,155,800 182,205,972
------------------
NETHERLANDS 4.3%
ING Groep NV .................................... Diversified Financial Services 16,000,000 643,488,790
Koninklijke Philips Electronics NV .............. Household Durables 12,000,000 472,970,801
Reed Elsevier NV ................................ Media 30,000,000 541,145,299
------------------
1,657,604,890
------------------
RUSSIA 0.3%
Gazprom, ADR .................................... Oil, Gas & Consumable Fuels 3,000,000 125,550,000
------------------
SINGAPORE 0.5%
Singapore Telecommunications Ltd. ............... Diversified Telecommunication Services 86,272,000 205,995,657
------------------
SOUTH AFRICA 0.4%
Sappi Ltd. ...................................... Paper & Forest Products 9,327,604 146,744,716
------------------
SOUTH KOREA 4.5%
Hyundai Motor Co. Ltd. .......................... Automobiles 3,000,000 222,541,967
Kookmin Bank .................................... Commercial Banks 4,700,000 379,706,901
KT Corp., ADR ................................... Diversified Telecommunication Services 13,140,600 313,009,092
Samsung Electronics Co. Ltd. .................... Semiconductors & Semiconductor Equipment 870,920 548,589,097
SK Telecom Co. Ltd. ............................. Wireless Telecommunication Services 300,000 66,027,178
SK Telecom Co. Ltd., ADR ........................ Wireless Telecommunication Services 7,000,000 191,590,000
------------------
1,721,464,235
------------------
SWEDEN 0.8%
Svenska Cellulosa AB, B ......................... Paper & Forest Products 17,578,647 304,587,457
------------------
SWITZERLAND 3.1%
Nestle SA ....................................... Food Products 1,000,000 434,728,656
Novartis AG ..................................... Pharmaceuticals 7,000,000 369,167,770
UBS AG .......................................... Capital Markets 7,200,000 375,248,180
------------------
1,179,144,606
------------------
UNITED KINGDOM 16.5%
Aviva PLC ....................................... Insurance 40,000,000 571,546,926
BP PLC .......................................... Oil, Gas & Consumable Fuels 55,508,778 624,106,327
British Sky Broadcasting Group PLC .............. Media 24,000,000 326,955,496
Compass Group PLC ............................... Hotels, Restaurants & Leisure 68,389,574 448,255,169
GlaxoSmithKline PLC ............................. Pharmaceuticals 22,000,000 574,572,051
HSBC Holdings PLC ............................... Commercial Banks 41,999,897 752,455,626
Kingfisher PLC .................................. Specialty Retail 40,000,000 168,196,943

20 | Annual Report

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, AUGUST 31, 2007 (CONTINUED)

COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
Old Mutual PLC .................................. Insurance 75,863,935 $ 244,338,739
Pearson PLC ..................................... Media 22,000,000 330,545,311
a Rolls-Royce Group PLC ........................... Aerospace & Defense 16,000,000 164,889,473
Royal Bank of Scotland Group PLC ................ Commercial Banks 49,560,000 574,213,473
Royal Dutch Shell PLC, B ........................ Oil, Gas & Consumable Fuels 18,000,000 702,433,995
b Standard Life Assurance Co., 144A ............... Insurance 27,035,210 163,706,080
Vodafone Group PLC .............................. Wireless Telecommunication Services 203,121,749 654,613,940
------------------
6,300,829,549
------------------
UNITED STATES 39.2%
Accenture Ltd., A ............................... IT Services 11,000,000 453,310,000
American International Group Inc. ............... Insurance 11,000,000 726,000,000
a Amgen Inc. ...................................... Biotechnology 10,000,000 501,100,000
The Bank of New York Mellon Corp. ............... Capital Markets 4,480,800 181,158,744
a Boston Scientific Corp. ......................... Health Care Equipment & Supplies 33,000,000 423,390,000
Bristol-Myers Squibb Co. ........................ Pharmaceuticals 9,267,018 270,133,575
a Cadence Design Systems Inc. ..................... Software 10,000,000 217,200,000
a,c Chico's FAS Inc. ................................ Specialty Retail 13,897,527 222,082,481
a Comcast Corp., A ................................ Media 15,000,000 387,900,000
a Covidien Ltd. ................................... Health Care Equipment & Supplies 6,500,000 258,895,000
c Eastman Kodak Co. ............................... Leisure Equipment & Products 17,000,000 453,390,000
El Paso Corp. ................................... Oil, Gas & Consumable Fuels 28,000,000 444,360,000
Electronic Data Systems Corp. ................... IT Services 13,456,000 308,007,840
a Expedia Inc. .................................... Internet & Catalog Retail 9,265,760 276,582,936
General Electric Co. ............................ Industrial Conglomerates 22,000,000 855,140,000
Harley-Davidson Inc. ............................ Automobiles 3,500,000 188,265,000
International Paper Co. ......................... Paper & Forest Products 8,000,000 280,880,000
a,c Interpublic Group of Cos. Inc. .................. Media 33,000,000 361,350,000
Merck & Co. Inc. ................................ Pharmaceuticals 9,000,000 451,530,000
Microsoft Corp. ................................. Software 30,000,000 861,900,000
News Corp., A ................................... Media 40,000,000 809,200,000
a Oracle Corp. .................................... Software 40,000,000 811,200,000
Pfizer Inc. ..................................... Pharmaceuticals 34,000,000 844,560,000
Pitney Bowes Inc. ............................... Commercial Services & Supplies 3,176,800 141,907,656
Raytheon Co. .................................... Aerospace & Defense 4,000,000 245,360,000
c Seagate Technology .............................. Computers & Peripherals 33,000,000 852,060,000
Sprint Nextel Corp. ............................. Wireless Telecommunication Services 25,000,000 473,000,000
The St. Joe Co. ................................. Real Estate Management & Development 1,415,700 44,764,434
a,c Tenet Healthcare Corp. .......................... Health Care Providers & Services 35,000,000 118,650,000
Time Warner Inc. ................................ Media 35,000,000 664,300,000
Torchmark Corp. ................................. Insurance 2,817,000 173,414,520
a Tyco Electronics Ltd. ........................... Electronic Equipment & Instruments 6,500,000 226,655,000
Tyco International Ltd. ......................... Industrial Conglomerates 6,500,000 287,040,000
United Parcel Service Inc., B ................... Air Freight & Logistics 4,309,000 326,880,740
a Viacom Inc., B .................................. Media 15,000,000 591,900,000
Willis Group Holdings Ltd. ...................... Insurance 6,475,588 251,900,373
------------------
14,985,368,299
------------------

Annual Report | 21

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, AUGUST 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT d VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

TOTAL COMMON STOCKS
(COST $30,399,938,274) ............................................................ $ 37,121,142,273
------------------
SHORT TERM INVESTMENTS 2.8%
GOVERNMENT AND AGENCY SECURITIES 1.7%
UNITED STATES 1.7%
e FFCB, 1/29/08 ........................................................................ 20,000,000 19,613,300
e FHLB, 9/04/07 - 2/25/08 .............................................................. 481,394,000 473,651,503
e FHLMC, 1/22/08 ....................................................................... 100,000,000 98,158,600
e FNMA, 12/31/07 - 3/07/08 ............................................................. 50,650,000 49,612,049
------------------
TOTAL GOVERNMENT AND AGENCY SECURITIES
(COST $640,400,202) ............................................................... 641,035,452
------------------
TIME DEPOSITS 1.1%
IRELAND 1.0%
Bank of Scotland, Time Deposits,
4.15% - 4.29%, 9/04/07 - 9/14/07 .................................................. 275,000,000 EUR 374,660,013
------------------
UNITED KINGDOM 0.1%
Barclays PLC, Time Deposits,
4.12%, 9/04/07 .................................................................... 30,980,000 EUR 42,207,154
------------------
TOTAL TIME DEPOSITS
(COST $417,914,461) ............................................................... 416,867,167
------------------
TOTAL SHORT TERM INVESTMENTS
(COST $1,058,314,663) ............................................................. 1,057,902,619
------------------
TOTAL INVESTMENTS
(COST $31,458,252,937) 99.8% ...................................................... 38,179,044,892
OTHER ASSETS, LESS LIABILITIES 0.2% .................................................. 66,479,032
------------------
NET ASSETS 100.0% .................................................................... $ 38,245,523,924
==================

CURRENCY ABBREVIATION

EUR - Euro

SELECTED PORTFOLIO ABBREVIATIONS

ADR - American Depository Receipt
FFCB - Federal Farm Credit Bank
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corp.
FNMA - Federal National Mortgage Association

a Non-income producing for the twelve months ended August 31, 2007.

b Security was purchased pursuant to Rule 144A under the Securities Act of 1933
and may be sold in transactions exempt from registration only to qualified
institutional buyers or in a public offering registered under the Securities Act
of 1933. These securities have been deemed liquid under guidelines approved by
the Fund's Board of Directors. At August 31, 2007, the value of this security
was $163,706,080, representing 0.43% of net assets.

c See Note 8 regarding holdings of 5% voting securities.

d The principal amount is stated in U.S. dollars unless otherwise indicated.

e The security is traded on a discount basis with no stated coupon rate.

22 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
August 31, 2007

Assets:
Investments in securities:
Cost - Unaffiliated issuers ............................................. $29,405,951,936
Cost - Non-controlled affiliated issuers (Note 8) ....................... 2,052,301,001
----------------
Total cost of investments ............................................... $31,458,252,937
================
Value - Unaffiliated issuers ............................................ $36,171,512,411
Value - Non-controlled affiliated issuers (Note 8) ...................... 2,007,532,481
----------------
Total value of investments .............................................. 38,179,044,892
Cash ....................................................................... 31,346
Foreign currency, at value (cost $1,421,266) ............................... 1,422,442
Receivables:
Investment securities sold .............................................. 25,421,198
Capital shares sold ..................................................... 50,027,766
Dividends and interest .................................................. 73,454,364
----------------
Total assets ......................................................... 38,329,402,008
----------------
Liabilities:
Payables:
Investment securities purchased ......................................... 2,808,830
Capital shares redeemed ................................................. 42,537,561
Affiliates .............................................................. 35,390,257
Accrued expenses and other liabilities ..................................... 3,141,436
----------------
Total liabilities .................................................... 83,878,084
----------------
Net assets, at value .............................................. $38,245,523,924
================
Net assets consist of:
Paid-in capital ............................................................ $29,009,880,401
Undistributed net investment income ........................................ 446,594,400
Net unrealized appreciation (depreciation) ................................. 6,721,342,667
Accumulated net realized gain (loss) ....................................... 2,067,706,456
----------------
Net assets, at value .............................................. $38,245,523,924
================

Annual Report |
The accompanying notes are an integral part of these financial statements. | 23

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
August 31, 2007

CLASS A:
Net assets, at value ....................................................... $27,997,563,576
================
Shares outstanding ......................................................... 1,070,634,800
================
Net asset value per share a ................................................ $ 26.15
================
Maximum offering price per share (net asset value per share / 94.25%) ...... $ 27.75
================
CLASS B:
Net assets, at value ....................................................... $ 563,335,039
================
Shares outstanding ......................................................... 22,049,212
================
Net asset value and maximum offering price per share a ..................... $ 25.55
================
CLASS C:
Net assets, at value ....................................................... $ 2,759,140,649
================
Shares outstanding ......................................................... 108,641,190
================
Net asset value and maximum offering price per share a ..................... $ 25.40
================
CLASS R:
Net assets, at value ....................................................... $ 467,391,057
================
Shares outstanding ......................................................... 18,058,002
================
Net asset value and maximum offering price per share a ..................... $ 25.88
================
ADVISOR CLASS:
Net assets, at value ....................................................... $ 6,458,093,603
================
Shares outstanding ......................................................... 246,348,053
================
Net asset value and maximum offering price per share a ..................... $ 26.22
================

a Redemption price is equal to net asset value less contingent deferred sales
charges, if applicable, and redemption fees retained by the Fund.

24 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the year ended August 31, 2007

Investment income:
Dividends: (net of foreign taxes of $54,431,355)
Unaffiliated issuers .................................................... $ 761,667,057
Non-controlled affiliated issuers (Note 8) .............................. 30,558,047
Interest ................................................................... 101,690,817
----------------
Total investment income .............................................. 893,915,921
----------------
Expenses:
Management fees (Note 3a) .................................................. 205,355,813
Administrative fees (Note 3b) .............................................. 27,998,303
Distribution fees (Note 3c)
Class A ................................................................. 68,541,121
Class B ................................................................. 6,046,244
Class C ................................................................. 26,900,692
Class R ................................................................. 2,306,138
Transfer agent fees (Note 3e) .............................................. 34,631,957
Custodian fees (Note 4) .................................................... 5,064,849
Reports to shareholders .................................................... 1,731,366
Registration and filing fees ............................................... 452,495
Professional fees .......................................................... 583,388
Directors' fees and expenses ............................................... 304,171
Other ...................................................................... 1,043,680
----------------
Total expenses ....................................................... 380,960,217
Expense reductions (Note 4) .......................................... (140,621)
----------------
Net expenses ...................................................... 380,819,596
----------------
Net investment income .......................................... 513,096,325
----------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments
Unaffiliated issuers ................................................. 2,225,915,478
Non-controlled affiliated issuers (Note 8) ........................... 30,882,264
Foreign currency transactions ........................................... (8,210,904)
----------------
Net realized gain (loss) .......................................... 2,248,586,838
----------------
Net change in unrealized appreciation (depreciation) on:
Investments ................................................................ 1,231,775,245
Translation of assets and liabilities denominated in foreign currencies .... (42,898)
----------------
Net change in unrealized appreciation (depreciation) .............. 1,231,732,347
----------------
Net realized and unrealized gain (loss) ....................................... 3,480,319,185
----------------
Net increase (decrease) in net assets resulting from operations ............... $ 3,993,415,510
================

Annual Report |
The accompanying notes are an integral part of these financial statements. | 25

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

----------------------------------
YEAR ENDED AUGUST 31,
2007 2006
----------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ................................................................ $ 513,096,325 $ 505,912,432
Net realized gain (loss) from investments and foreign currency transactions .......... 2,248,586,838 2,649,960,528
Net change in unrealized appreciation (depreciation) on investments and
translation of assets and liabilities denominated in foreign currencies ........... 1,231,732,347 690,301,692
----------------------------------
Net increase (decrease) in net assets resulting from operations ................ 3,993,415,510 3,846,174,652
----------------------------------
Distributions to shareholders from:
Net investment income:
Class A .............................................................................. (472,698,663) (364,079,156)
Class B .............................................................................. (7,025,647) (5,612,051)
Class C .............................................................................. (30,736,178) (21,758,466)
Class R .............................................................................. (7,235,471) (2,142,953)
Advisor Class ........................................................................ (91,885,469) (53,652,474)
Net realized gains:
Class A .............................................................................. (1,615,535,935) (1,182,938,830)
Class B .............................................................................. (39,138,180) (31,607,148)
Class C .............................................................................. (163,775,141) (115,554,681)
Class R .............................................................................. (27,527,557) (7,764,923)
Advisor Class ........................................................................ (277,255,005) (155,086,029)
----------------------------------
Total distributions to shareholders ........................................................ (2,732,813,246) (1,940,196,711)
----------------------------------
Capital share transactions: (Note 2)
Class A .............................................................................. 3,063,601,833 1,718,287,310
Class B .............................................................................. (39,451,658) (12,139,236)
Class C .............................................................................. 310,700,465 258,131,779
Class R .............................................................................. 48,144,040 256,489,441
Advisor Class ........................................................................ 2,315,763,985 1,177,148,034
----------------------------------
Total capital share transactions ........................................................... 5,698,758,665 3,397,917,328
----------------------------------
Redemption fees ............................................................................ 102,551 72,565
----------------------------------
Net increase (decrease) in net assets ....................................... 6,959,463,480 5,303,967,834
Net assets:
Beginning of year ....................................................................... 31,286,060,444 25,982,092,610
----------------------------------
End of year ............................................................................. $38,245,523,924 $31,286,060,444
==================================
Undistributed net investment income included in net assets:
End of year ............................................................................. $ 446,594,400 $ 516,072,545
==================================

26 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Templeton Growth Fund, Inc. (the Fund) is registered under the Investment
Company Act of 1940, as amended, (the 1940 Act) as a diversified, open-end
investment company. The Fund offers five classes of shares: Class A, Class B,
Class C, Class R, and Advisor Class. Each class of shares differs by its initial
sales load, contingent deferred sales charges, distribution fees, voting rights
on matters affecting a single class and its exchange privilege.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market.

Corporate debt securities and Government securities generally trade in the
over-the-counter market rather than on a securities exchange. The Fund may
utilize independent pricing services, quotations from bond dealers, and
information with respect to bond and note transactions, to assist in determining
a current market value for each security. The Fund's pricing services may use
valuation models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate and maturity date, option adjusted
spread models, prepayment projections, interest rate spreads and yield curves,
to determine current value.

Foreign securities are valued as of the close of trading on the foreign stock
exchange on which the security is primarily traded, or the NYSE, whichever is
earlier. If no sale is reported at that time, the foreign security will be
valued within the range of the most recent quoted bid and ask prices. The value
is then converted into its U.S. dollar equivalent at the foreign exchange rate
in effect at the close of the NYSE on the day that the value of the foreign
security is determined.

The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the

Annual Report | 27

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

availability (including the reliability) of the value of a portfolio security
held by the Fund. The investment manager monitors price movements following the
close of trading in foreign stock markets through a series of country specific
market proxies (such as baskets of American Depository Receipts, futures
contracts and exchange traded funds). These price movements are measured against
established trigger thresholds for each specific market proxy to assist in
determining if an event has occurred. If such an event occurs, the securities
may be valued using fair value procedures, which may include the use of
independent pricing services. All security valuation procedures are approved by
the Fund's Board of Directors.

B. FOREIGN CURRENCY TRANSLATION

Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities, income and expense items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate in effect on the transaction
date. Occasionally, events may impact the availability or reliability of foreign
exchange rates used to convert the U.S. dollar equivalent value. If such an
event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Fund's Board of Directors.

The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments on the
Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the recorded amounts
of dividends, interest, and foreign withholding taxes and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in foreign exchange rates on
foreign denominated assets and liabilities other than investments in securities
held at the end of the reporting period.

C. FOREIGN CURRENCY CONTRACTS

When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. A foreign exchange contract is an agreement
between two parties to exchange different currencies at an agreed upon exchange
rate at a future date. Realized and unrealized gains and losses on these
contracts are included in the Statement of Operations.

The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts, which may be in
excess of the amount reflected in the Statement of Assets and Liabilities.

28 | Annual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. INCOME TAXES

No provision has been made for U.S. income taxes because it is the Fund's policy
to qualify as a regulated investment company under the Internal Revenue Code and
to distribute to shareholders substantially all of its taxable income and net
realized gains.

Foreign securities held by the Fund may be subject to foreign taxation on
dividend and interest income received. Foreign taxes, if any, are recorded based
on the tax regulations and rates that exist in the foreign markets in which the
Fund invests.

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Amortization of
premium and accretion of discount on debt securities are included in interest
income. Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities are recognized as soon as the Fund is notified
of the ex-dividend date. Distributions to shareholders are recorded on the
ex-dividend date and are determined according to income tax regulations (tax
basis). Distributable earnings determined on a tax basis may differ from
earnings recorded in accordance with accounting principles generally accepted in
the United States of America. These differences may be permanent or temporary.
Permanent differences are reclassified among capital accounts to reflect their
tax character. These reclassifications have no impact on net assets or the
results of operations. Temporary differences are not reclassified, as they may
reverse in subsequent periods.

Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class. Differences in per share
distributions, by class, are generally due to differences in class specific
expenses.

F. ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expenses during the reporting period. Actual results could differ from those
estimates.

G. REDEMPTION FEES

A short term trading redemption fee will be imposed, with some exceptions, on
any Fund shares that are redeemed or exchanged within seven calendar days
following their purchase date. The redemption fee is 2% of the amount redeemed.
Such fees are retained by the Fund and accounted for as an addition to paid-in
capital.

Annual Report | 29

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. GUARANTEES AND INDEMNIFICATIONS

Under the Fund's organizational documents, its officers and directors are
indemnified by the Fund against certain liabilities arising out of the
performance of their duties to the Fund. Additionally, in the normal course of
business, the Fund enters into contracts with service providers that contain
general indemnification clauses. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred. Currently, the Fund expects the
risk of loss to be remote.

2. CAPITAL STOCK

At August 31, 2007, there were 2.4 billion shares authorized ($0.01 par value).
Transactions in the Fund's shares were as follows:

----------------------------------------------------------------
YEAR ENDED AUGUST 31,
2007 2006
----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------

CLASS A SHARES:
Shares sold .................................................. 225,710,785 $ 5,875,431,840 167,053,079 $ 3,980,663,447
Shares issued in reinvestment
of distributions .......................................... 73,223,640 1,796,575,224 60,045,373 1,335,844,057
Shares redeemed .............................................. (175,958,675) (4,608,405,231) (150,700,688) (3,598,220,194)
----------------------------------------------------------------
Net increase (decrease) ...................................... 122,975,750 $ 3,063,601,833 76,397,764 $ 1,718,287,310
================================================================
CLASS B SHARES:
Shares sold .................................................. 604,753 $ 15,300,419 816,520 $ 18,928,014
Shares issued in reinvestment
of distributions .......................................... 1,750,128 42,085,963 1,566,113 34,247,769
Shares redeemed .............................................. (3,759,954) (96,838,040) (2,785,983) (65,315,019)
----------------------------------------------------------------
Net increase (decrease) ...................................... (1,405,073) $ (39,451,658) (403,350) $ (12,139,236)
================================================================
CLASS C SHARES:
Shares sold .................................................. 18,577,793 $ 471,011,227 17,760,744 $ 413,194,076
Shares issued in reinvestment
of distributions .......................................... 7,017,519 167,782,505 5,487,434 119,416,647
Shares redeemed .............................................. (12,894,022) (328,093,267) (11,747,282) (274,478,944)
----------------------------------------------------------------
Net increase (decrease) ...................................... 12,701,290 $ 310,700,465 11,500,896 $ 258,131,779
================================================================
CLASS R SHARES:
Shares sold .................................................. 6,284,962 $ 162,082,026 13,612,470 $ 322,598,597
Shares issued in reinvestment
of distributions .......................................... 1,416,323 34,427,697 439,664 9,713,652
Shares redeemed .............................................. (5,736,892) (148,365,683) (3,159,483) (75,822,808)
----------------------------------------------------------------
Net increase (decrease) ...................................... 1,964,393 $ 48,144,040 10,892,651 $ 256,489,441
================================================================

30 | Annual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2. CAPITAL STOCK (CONTINUED)

ADVISOR CLASS SHARES:
Shares sold .................................................. 81,193,552 $ 2,119,863,197 49,901,992 $ 1,183,707,689
Shares issued in reinvestment
of distributions .......................................... 14,307,566 351,653,615 8,810,789 196,212,142
Shares redeemed .............................................. (5,907,430) (155,752,827) (8,600,538) (202,771,797)
----------------------------------------------------------------
Net increase (decrease) ...................................... 89,593,688 $ 2,315,763,985 50,112,243 $ 1,177,148,034
================================================================

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that
together are referred to as Franklin Templeton Investments. Certain officers and
directors of the Fund are also officers and/or directors of the following
subsidiaries:

- ---------------------------------------------------------------------------------------------------
SUBSIDIARY AFFILIATION
- ---------------------------------------------------------------------------------------------------

Templeton Global Advisors, Limited (TGAL) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. MANAGEMENT FEES

The Fund pays an investment management fee to TGAL based on the average daily
net assets of the Fund as follows:

- ----------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
- ----------------------------------------------------------------------------
0.630% Up to and including $1 billion
0.615% Over $1 billion, up to and including $5 billion
0.600% Over $5 billion, up to and including $10 billion
0.580% Over $10 billion, up to and including $15 billion
0.560% Over $15 billion, up to and including $20 billion
0.540% Over $20 billion, up to and including $25 billion
0.530% Over $25 billion, up to and including $30 billion
0.520% Over $30 billion, up to and including $35 billion
0.510% Over $35 billion, up to and including $40 billion
* 0.500% Over $40 billion, up to and including $45 billion
* 0.490% In excess of $45 billion

* Breakpoint added effective August 1, 2007.

Annual Report | 31

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services based on the Fund's average
daily net assets as follows:

- ------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
- ------------------------------------------------------------------------------
0.150% Up to and including $200 million
0.135% Over $200 million, up to and including $700 million
0.100% Over $700 million, up to and including $1.2 billion
0.075% In excess of $1.2 billion

C. DISTRIBUTION FEES

The Fund's Board of Directors has adopted distribution plans for each share
class, with the exception of Advisor Class shares, pursuant to Rule 12b-1 under
the 1940 Act. Under the Fund's Class A reimbursement distribution plan, the Fund
reimburses Distributors for costs incurred in connection with the servicing,
sale and distribution of the Fund's shares up to the maximum annual plan rate.
Under the Class A reimbursement distribution plan, costs exceeding the maximum
for the current plan year cannot be reimbursed in subsequent periods.

In addition, under the Fund's Class B, C, and R compensation distribution plans,
the Fund pays Distributors for costs incurred in connection with the servicing,
sale and distribution of the Fund's shares up to the maximum annual plan rate
for each class.

The maximum annual plan rates, based on the average daily net assets, for each
class, are as follows:

Class A ................................................................ 0.25%
Class B ................................................................ 1.00%
Class C ................................................................ 1.00%
Class R ................................................................ 0.50%

D. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sales and redemptions of the Fund's shares for the year:

Sales charges retained net of commissions paid to
unaffiliated broker/dealers .................................... $9,958,946
Contingent deferred sales charges retained ........................ $ 691,768

E. TRANSFER AGENT FEES

For the year ended August 31, 2007, the Fund paid transfer agent fees of
$34,631,957, of which $21,284,175 was retained by Investor Services.

32 | Annual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the year ended August 31, 2007, the
custodian fees were reduced as noted in the Statement of Operations.

5. INCOME TAXES

The tax character of distributions paid during the years ended August 31, 2007
and August 31, 2006, was as follows:

--------------------------------
2007 2006
--------------------------------
Distributions paid from:
Ordinary income .......................... $ 817,884,957 $ 526,805,140
Long term capital gain ................... 1,914,928,289 1,413,391,571
--------------------------------
$ 2,732,813,246 $1,940,196,711
================================

At August 31, 2007, the cost of investments and net unrealized appreciation
(depreciation), undistributed ordinary income and undistributed long term
capital gains for income tax purposes were as follows:

Cost of investments ........................................ $ 31,474,525,271
=================

Unrealized appreciation .................................... $ 7,652,326,761
Unrealized depreciation .................................... (947,807,140)
-----------------
Net unrealized appreciation (depreciation) ................. $ 6,704,519,621
=================

Undistributed ordinary income .............................. $ 613,008,779
Undistributed long term capital gains ...................... 1,917,564,411
-----------------
Distributable earnings ..................................... $ 2,530,573,190
=================

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions, and bond discounts
and premiums.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions, and bond discounts and premiums.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
year ended August 31, 2007, aggregated $11,795,087,242 and $6,935,476,294,
respectively.

Annual Report | 33

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

7. CONCENTRATION OF RISK

Investing in foreign securities may include certain risks and considerations not
typically associated with investing in U.S. securities, such as fluctuating
currency values and changing local and regional economic, political and social
conditions, which may result in greater market volatility. In addition, certain
foreign securities may not be as liquid as U.S. securities.

8. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES

The Investment Company Act of 1940 defines "affiliated companies" to include
investments in portfolio companies in which a fund owns 5% or more of the
outstanding voting securities. Investments in "affiliated companies" for the
year ended August 31, 2007, were as shown below.

- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF NUMBER OF
SHARES HELD SHARES HELD VALUE
AT BEGINNING GROSS GROSS AT END AT END INVESTMENT REALIZED CAPITAL
NAME OF ISSUER OF YEAR ADDITIONS REDUCTIONS OF YEAR OF YEAR INCOME (LOSS) GAIN (LOSS)
- ------------------------------------------------------------------------------------------------------------------------------------

NON-CONTROLLED AFFILIATES
Chico's FAS, Inc. ........... -- 13,897,527 -- 13,897,527 $ 222,082,481 $ -- $ --
Eastman Kodak Co. ........... 17,000,000 -- -- 17,000,000 453,390,000 8,500,000 --
Interpublic Group of
Cos. Inc. ................ 33,000,000 -- -- 33,000,000 361,350,000 -- --
Sappi Ltd. .................. 14,000,000 -- 4,672,396 9,327,604 -- a 4,221,797 21,178,893
Seagate Technology .......... 19,052,400 13,947,600 -- 33,000,000 852,060,000 9,900,000 --
Tenet Healthcare Corp. ...... 35,000,000 -- -- 35,000,000 118,650,000 -- --
Willis Group Holdings
Ltd. ..................... 9,000,000 -- 2,524,412 6,475,588 -- a 7,936,250 9,703,371
-------------------------------------------------
TOTAL AFFILIATED SECURITIES (5.25% of Net Assets) ............................ $2,007,532,481 $ 30,558,047 $ 30,882,264
=================================================

a As of August 31, 2007, no longer an affiliate.

9. REGULATORY AND LITIGATION MATTERS

As part of various investigations by a number of federal, state, and foreign
regulators and governmental entities, including the Securities and Exchange
Commission ("SEC"), relating to certain practices in the mutual fund industry,
including late trading, market timing and marketing support payments to
securities dealers who sell fund shares ("marketing support"), Franklin
Resources, Inc. and certain of its subsidiaries (collectively, the "Company"),
entered into settlements with certain of those regulators and governmental
entities. Specifically, the Company entered into settlements with the SEC, among
others, concerning market timing and marketing support.

On June 23, 2006, the SEC approved the proposed plan of distribution for the
marketing support settlement, and disbursement of the settlement monies to the
designated funds, in accordance with the terms and conditions of that settlement
and plan, was completed in September 2006.

34 | Annual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

9. REGULATORY AND LITIGATION MATTERS (CONTINUED)

On June 6, 2007, the SEC posted for public comment the proposed plan of
distribution for the market timing settlement. Once the SEC approves the final
plan of distribution, disbursements of settlement monies will be made promptly
to individuals who were shareholders of the designated funds during the relevant
period, in accordance with the terms and conditions of the settlement and plan.

In addition, the Company, as well as most of the mutual funds within Franklin
Templeton Investments and certain current or former officers, Company directors,
fund directors, and employees, have been named in private lawsuits (styled as
shareholder class actions, or as derivative actions on behalf of either the
named funds or Franklin Resources, Inc.). The lawsuits relate to the industry
practices referenced above.

The Company and fund management believe that the claims made in each of the
private lawsuits referenced above are without merit and intend to defend against
them vigorously. The Company cannot predict with certainty the eventual outcome
of these lawsuits, nor whether they will have a material negative impact on the
Company. If it is determined that the Company bears responsibility for any
unlawful or inappropriate conduct that caused losses to the Fund, it is
committed to making the Fund or its shareholders whole, as appropriate.

10. NEW ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an
Interpretation of FASB Statement No. 109" ("FIN 48"), which clarifies the
accounting for uncertainty in tax positions taken or expected to be taken in a
tax return. FIN 48 provides guidance on the measurement, recognition,
classification and disclosure of tax positions, along with accounting for the
related interest and penalties. FIN 48 is effective for fiscal years beginning
after December 15, 2006, and is to be applied to all open tax years as of the
date of effectiveness. On December 22, 2006, the Securities and Exchange
Commission extended the implementation date to no later than the last net asset
value calculation in the first semi-annual reporting beginning after December
15, 2006. The Fund believes the adoption of FIN 48 will have no material impact
on its financial statements.

In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement"
("SFAS 157"), which defines fair value, establishes a framework for measuring
fair value, and expands disclosures about fair value measurements. SFAS 157 is
effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. The Fund believes the adoption of SFAS 157
will have no material impact on its financial statements.

Annual Report | 35

Templeton Growth Fund, Inc.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF TEMPLETON GROWTH FUND, INC.

In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Templeton Growth Fund, Inc. (the
"Fund") at August 31, 2007, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 2007 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
October 18, 2007

36 | Annual Report

Templeton Growth Fund, Inc.

TAX DESIGNATION (UNAUDITED)

Under Section 852(b)(3)(C) of the Code, the Fund designates the maximum amount
allowable but no less than $2,034,432,570 as a long term capital gain dividend
for the fiscal year ended August 31, 2007.

Under Section 871(k)(2)(C) of the Code, the Fund designates the maximum amount
allowable but no less than $173,384,737 as a short term capital gain dividend
for purposes of the tax imposed under Section 871(a)(1)(A) of the Code for the
fiscal year ended August 31, 2007.

Under Section 854(b)(2) of the Code, the Fund designates 20.99% of the ordinary
income dividends as income qualifying for the dividends received deduction for
the fiscal year ended August 31, 2007.

Under Section 854(b)(2) of the Code, the Fund designates the maximum amount
allowable but no less than $788,805,606 as qualified dividends for purposes of
the maximum rate under Section 1(h)(11) of the Code for the fiscal year ended
August 31, 2007. In January 2008, shareholders will receive Form 1099-DIV which
will include their share of qualified dividends distributed during the calendar
year 2007. Shareholders are advised to check with their tax advisors for
information on the treatment of these amounts on their individual income tax
returns.

Under Section 871(k)(1)(C) of the Code, the Fund designates the maximum amount
allowable but no less than $55,449,857 as interest related dividends for
purposes of the tax imposed under Section 871(a)(1)(A) of the Code for the
fiscal year ended August 31, 2007.

At August 31, 2007, more than 50% of the Templeton Growth Fund's total assets
were invested in securities of foreign issuers. In most instances, foreign taxes
were withheld from dividends paid to the Fund on these investments. As shown in
the table below, the Fund designates to shareholders the foreign source income
and foreign taxes paid, pursuant to Section 853 of the Code. This designation
will allow shareholders of record on October 19, 2007, to treat their
proportionate share of foreign taxes paid by the Fund as having been paid
directly by them. The shareholder shall consider these amounts as foreign taxes
paid in the tax year in which they receive the Fund distribution.

The following tables provide a detailed analysis, by country, of foreign tax
paid, foreign source income, and foreign qualified dividends as designated by
the Fund, to Class A, Class B, Class C, and Class R and Advisor Class
shareholders of record.

Annual Report | 37

Templeton Growth Fund, Inc.

TAX DESIGNATION (UNAUDITED) (CONTINUED)

RECORD DATE: 10/18/2007

- --------------------------------------------------------------------------------
CLASS A
FOREIGN TAX FOREIGN FOREIGN
PAID SOURCE INCOME QUALIFIED DIVIDENDS
COUNTRY PER SHARE PER SHARE PER SHARE
- --------------------------------------------------------------------------------
Bermuda ................... $0.0000 $0.0038 $0.0038
Canada .................... 0.0010 0.0044 0.0044
Finland ................... 0.0026 0.0116 0.0116
France .................... 0.0074 0.0329 0.0329
Germany ................... 0.0037 0.0241 0.0241
Hong Kong ................. 0.0000 0.0061 0.0000
Ireland ................... 0.0000 0.0044 0.0000
Italy ..................... 0.0072 0.0325 0.0325
Japan ..................... 0.0008 0.0082 0.0082
Mexico .................... 0.0000 0.0024 0.0024
Netherlands ............... 0.0061 0.0300 0.0300
Singapore ................. 0.0000 0.0043 0.0000
South Africa .............. 0.0000 0.0020 0.0020
South Korea ............... 0.0045 0.0186 0.0186
Spain ..................... 0.0009 0.0043 0.0042
Sweden .................... 0.0011 0.0048 0.0048
Switzerland ............... 0.0030 0.0136 0.0136
United Kingdom ............ 0.0000 0.1046 0.0849
--------------------------------------------------
TOTAL ..................... $0.0383 $0.3126 $0.2780
==================================================

- --------------------------------------------------------------------------------
CLASS B
FOREIGN TAX FOREIGN FOREIGN
PAID SOURCE INCOME QUALIFIED DIVIDENDS
COUNTRY PER SHARE PER SHARE PER SHARE
- --------------------------------------------------------------------------------
Bermuda ................... $0.0000 $0.0023 $0.0023
Canada .................... 0.0010 0.0027 0.0027
Finland ................... 0.0026 0.0071 0.0071
France .................... 0.0074 0.0201 0.0201
Germany ................... 0.0037 0.0147 0.0147
Hong Kong ................. 0.0000 0.0037 0.0000
Ireland ................... 0.0000 0.0027 0.0000
Italy ..................... 0.0072 0.0198 0.0198
Japan ..................... 0.0008 0.0050 0.0050
Mexico .................... 0.0000 0.0015 0.0015
Netherlands ............... 0.0061 0.0183 0.0183
Singapore ................. 0.0000 0.0027 0.0000
South Africa .............. 0.0000 0.0012 0.0012
South Korea ............... 0.0045 0.0113 0.0113
Spain ..................... 0.0009 0.0026 0.0025
Sweden .................... 0.0011 0.0029 0.0029
Switzerland ............... 0.0030 0.0083 0.0083
United Kingdom ............ 0.0000 0.0639 0.0519
--------------------------------------------------
TOTAL ..................... $0.0383 $0.1908 $0.1696
==================================================

38 | Annual Report

Templeton Growth Fund, Inc.

TAX DESIGNATION (UNAUDITED) (CONTINUED)

- --------------------------------------------------------------------------------
CLASS C
FOREIGN TAX FOREIGN FOREIGN
PAID SOURCE INCOME QUALIFIED DIVIDENDS
COUNTRY PER SHARE PER SHARE PER SHARE
- --------------------------------------------------------------------------------
Bermuda ................... $0.0000 $0.0025 $0.0025
Canada .................... 0.0010 0.0029 0.0029
Finland ................... 0.0026 0.0077 0.0077
France .................... 0.0074 0.0220 0.0220
Germany ................... 0.0037 0.0161 0.0161
Hong Kong ................. 0.0000 0.0040 0.0000
Ireland ................... 0.0000 0.0029 0.0000
Italy ..................... 0.0072 0.0217 0.0217
Japan ..................... 0.0008 0.0054 0.0054
Mexico .................... 0.0000 0.0016 0.0016
Netherlands ............... 0.0061 0.0200 0.0200
Singapore ................. 0.0000 0.0029 0.0000
South Africa .............. 0.0000 0.0013 0.0013
South Korea ............... 0.0045 0.0124 0.0124
Spain ..................... 0.0009 0.0028 0.0027
Sweden .................... 0.0011 0.0032 0.0032
Switzerland ............... 0.0030 0.0090 0.0090
United Kingdom ............ 0.0000 0.0698 0.0567
--------------------------------------------------
TOTAL ..................... $0.0383 $0.2082 $0.1852
==================================================

- --------------------------------------------------------------------------------
CLASS R
FOREIGN TAX FOREIGN FOREIGN
PAID SOURCE INCOME QUALIFIED DIVIDENDS
COUNTRY PER SHARE PER SHARE PER SHARE
- --------------------------------------------------------------------------------
Bermuda ................... $0.0000 $0.0034 $0.0034
Canada .................... 0.0010 0.0039 0.0039
Finland ................... 0.0026 0.0103 0.0103
France .................... 0.0074 0.0293 0.0293
Germany ................... 0.0037 0.0214 0.0214
Hong Kong ................. 0.0000 0.0054 0.0000
Ireland ................... 0.0000 0.0039 0.0000
Italy ..................... 0.0072 0.0289 0.0289
Japan ..................... 0.0008 0.0072 0.0072
Mexico .................... 0.0000 0.0022 0.0022
Netherlands ............... 0.0061 0.0267 0.0267
Singapore ................. 0.0000 0.0039 0.0000
South Africa .............. 0.0000 0.0018 0.0018
South Korea ............... 0.0045 0.0165 0.0165
Spain ..................... 0.0009 0.0038 0.0037
Sweden .................... 0.0011 0.0042 0.0042
Switzerland ............... 0.0030 0.0121 0.0121
United Kingdom ............ 0.0000 0.0930 0.0755
--------------------------------------------------
TOTAL ..................... $0.0383 $0.2779 $0.2471
==================================================

Annual Report | 39

Templeton Growth Fund, Inc.

TAX DESIGNATION (UNAUDITED) (CONTINUED)

- --------------------------------------------------------------------------------
ADVISOR CLASS
FOREIGN TAX FOREIGN FOREIGN
PAID SOURCE INCOME QUALIFIED DIVIDENDS
COUNTRY PER SHARE PER SHARE PER SHARE
- --------------------------------------------------------------------------------
Bermuda ................... $0.0000 $0.0043 $0.0043
Canada .................... 0.0010 0.0049 0.0049
Finland ................... 0.0026 0.0130 0.0130
France .................... 0.0074 0.0369 0.0369
Germany ................... 0.0037 0.0270 0.0270
Hong Kong ................. 0.0000 0.0068 0.0000
Ireland ................... 0.0000 0.0049 0.0000
Italy ..................... 0.0072 0.0365 0.0365
Japan ..................... 0.0008 0.0092 0.0092
Mexico .................... 0.0000 0.0027 0.0027
Netherlands ............... 0.0061 0.0337 0.0337
Singapore ................. 0.0000 0.0049 0.0000
South Africa .............. 0.0000 0.0022 0.0022
South Korea ............... 0.0045 0.0209 0.0209
Spain ..................... 0.0009 0.0048 0.0047
Sweden .................... 0.0011 0.0054 0.0054
Switzerland ............... 0.0030 0.0152 0.0152
United Kingdom ............ 0.0000 0.1174 0.0953
--------------------------------------------------
TOTAL ..................... $0.0383 $0.3507 $0.3119
==================================================

Foreign Tax Paid Per Share (Column 1) is the amount per share available to you,
as a tax credit (assuming you held your shares in the Fund for a minimum of 16
days during the 31-day period beginning 15 days before the ex-dividend date of
the Fund's distribution to which the foreign taxes relate), or, as a tax
deduction.

Foreign Source Income Per Share (Column 2) is the amount per share of income
dividends paid to you that is attributable to foreign securities held by the
Fund, plus any foreign taxes withheld on these dividends. The amounts reported
include foreign source qualified dividends that have not been adjusted for the
rate differential applicable to such dividend income. 1

Foreign Qualified Dividends Per Share (Column 3) is the amount per share of
foreign source qualified dividends the Fund paid to you, plus any foreign taxes
withheld on these dividends. These amounts represent the portion of the Foreign
Source Income reported to you in column 2 that were derived from qualified
foreign securities held by the Fund. 1

In January 2008, shareholders will receive Form 1099-DIV which will include
their share of taxes paid and foreign source income distributed during the
calendar year 2007. The Foreign Source Income reported on Form 1099-DIV has not
been adjusted for the rate differential on foreign source qualified dividend
income. Shareholders are advised to check with their tax advisors for
information on the treatment of these amounts on their 2007 individual income
tax returns.

1 Qualified dividends are taxed at a maximum rate of 15% (5% for those in the
10% and 15% income tax bracket). In determining the amount of foreign tax credit
that may be applied against the U.S. tax liability of individuals receiving
foreign source qualified dividends, adjustments may be required to the foreign
tax credit limitation calculation to reflect the rate differential applicable to
such dividend income. The rules, however, permit certain individuals to elect
not to apply the rate differential adjustments for capital gains and/or
dividends for any taxable year. Please consult your tax advisor and the
instructions to Form 1116 for more information.

40 | Annual Report

Templeton Growth Fund, Inc.

SPECIAL MEETING OF SHAREHOLDERS, MAY 18, 2007 AND RECONVENED ON JUNE 8, 2007 AND
JULY 6, 2007 (UNAUDITED)

A Special Meeting of Shareholders of Templeton Growth Fund, Inc. (the "Fund")
was held at the Fund's offices, 500 E. Broward Blvd., Fort Lauderdale, Florida
on May 18, 2007, and reconvened on June 8, 2007 and July 6, 2007. The purpose of
the meeting was to elect Directors of the Fund and to approve amendments to the
Fund's Charter. At the meeting, the following persons were elected by the
shareholders to serve as Independent Directors of the Fund: Harris J. Ashton,
Frank J. Crothers, Edith E. Holiday, David W. Niemiec, Frank A. Olson, Larry D.
Thompson, Constantine D. Tseretopoulos and Robert E. Wade. Charles B. Johnson
and Gregory E. Johnson were elected by the shareholders to serve as Interested
Directors. Shareholders also approved amendments to the Fund's Charter. No other
business was transacted at the meeting.

The results of the voting at the meeting are as follows:

Proposal 1. The Election of Directors:

- ----------------------------------------------------------------------------------------------------------------------
% OF % OF % OF % OF
OUTSTANDING VOTED OUTSTANDING VOTED
NAME FOR SHARES SHARES WITHHELD SHARES SHARES
- ----------------------------------------------------------------------------------------------------------------------

Harris J. Ashton .................. 744,490,073.243 52.031% 95.021% 39,012,662.856 2.726% 4.979%
Frank J. Crothers ................. 743,577,553.313 51.967% 94.904% 39,925,182.786 2.790% 5.096%
Edith E. Holiday .................. 691,081,387.731 48.298% 88.204% 92,421,348.368 6.459% 11.796%
David W. Niemiec .................. 743,502,418.772 51.962% 94.895% 40,000,317.327 2.795% 5.105%
Frank A. Olson .................... 742,785,632.853 51.912% 94.803% 40,717,103.246 2.845% 5.197%
Larry D. Thompson ................. 743,342,249.212 51.951% 94.874% 40,160,486.887 2.806% 5.126%
Constantine D. Tseretopoulos ...... 745,203,160.048 52.081% 95.112% 38,299,576.051 2.676% 4.888%
Robert E. Wade .................... 744,990,277.514 52.066% 95.085% 38,512,458.585 2.691% 4.915%
Charles B. Johnson ................ 743,208,283.809 51.941% 94.857% 40,294,452.290 2.816% 5.143%
Gregory E. Johnson ................ 744,902,204.333 52.060% 95.073% 38,600,531.766 2.697% 4.927%

Proposal 2. To Approve Amendments to the Fund's Charter:

- ------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------------
For ............................... 717,840,315.118 50.168 73.299
Against ........................... 28,080,832.293 1.963 2.867
Abstain ........................... 25,094,651.051 1.754 2.563
Broker Non-Votes .................. 208,315,258.000 14.559 21.271
- ------------------------------------------------------------------------------
TOTAL ............................. 979,331,056.462 68.443% 100.00%
- ------------------------------------------------------------------------------

Annual Report | 41

Templeton Growth Fund, Inc.

BOARD MEMBERS AND OFFICERS

The name, year of birth and address of the officers and board members, as well
as their affiliations, positions held with the Fund, principal occupations
during the past five years and number of U.S. registered portfolios overseen in
the Franklin Templeton Investments fund complex are shown below. Generally, each
board member serves until that person's successor is elected and qualified.

INDEPENDENT BOARD MEMBERS

- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN
NAME, YEAR OF BIRTH LENGTH OF FUND COMPLEX OVERSEEN
AND ADDRESS POSITION TIME SERVED BY BOARD MEMBER* OTHER DIRECTORSHIPS HELD
- ------------------------------------------------------------------------------------------------------------------------------------

HARRIS J. ASHTON (1932) Director Since 1992 139 Bar-S Foods (meat packing company).
500 East Broward Blvd.
Suite 2100
Fort Lauderdale, FL 33394-3091