Jeremy Grantham – Bubbles, Value Investing, and the Long Game at GMO (EP.493)
Episode publishedPodcast: Capital Allocators – Inside th...Capital Allocators – Inside the Institutional Investment Industry
Transcript preview
Preview only
The great bubbles are associated with great investment ideas that get overdone. It has to be serious. And ideally, it has to be obviously serious. Railroads are the best example, followed by the Internet. If you see that railroads are going to change the world, then of course you want to invest. It was precisely their obviousness and their importance. Internet, most people could see that it was pretty serious, that it would eventually change the world. Amazon went up six times, something like that in 2000. Even though it was a successful idea, it went down 92. Check it. It went down 92% in the
I'm Ted Seides, and this is Capital Allocators. My guest on today's show is Jeremy Grantham, the co founder of GMO, a $100,000,000,000 Boston based asset management firm he co founded in 1977. Over six decades in markets, Jeremy has been one of the most respected and outspoken voices on value, market bubbles, and long term investing. He recently published The Making of a Permabear with Edward Chancellor, an account of his career and investment lessons learned along the way. Our conversation begins with Jeremy's early lessons in frugality growing up in wartime Yorkshire and his interest in numb
of
challenges. Private market liquidity, peace around the world, and keeping up with my son, Eric, in creating witty spread the word clips. Now I can't figure out what will happen in private credit, how the private equity bottleneck will ease, what benchmark should replace the S and P 500, or why so many people have reached out commenting on Eric's lack of interest in the show. But I do know that the answers await from our incredible guests, and you should encourage all your colleagues to listen in and find out that truth. Thanks so much for spreading the word. Capital Allocators is brought to yo
It's a pleasure.
I'd love you to take me back to the aspects of your upbringing that impacted your beliefs and path in investing.
I suppose the biggest one was that I grew up in World War two. It was all around us, the blackout, people coming around to make sure that our curtains were drawn, no cars, cars were all unblocked, a few taxis. Every vehicle had shutters over the top so that they wouldn't cast much light up into the sky. There was a shortage of everything. I didn't know because that was my life when I was new. But I could tell that everybody was in that frame. You weren't allowed to waste anything. The idea that you would leave anything on your plate was a horror show. Everywhere you went there were lines for f
What aspect of that setup do you think influenced how you thought?
I think frugality was the big thing in the war. I was up in the North in a coal mining town. Yorkshire, our county is famous for its frugality anyway. That was two strikes. Then the man in the family, my grandfather, my father was overseas and then died fairly soon in World War II, had been brought up a Quaker. So that was strike three. By the time you had a Quaker in a Yorkshire coal mining town in World War II, pretty well know that you're going to have frugality deep into your backbone. When I go into a restaurant, I still look at the menu and take price into account. I know there's quite a
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.