Invest Like The Best
Episode 177 An Uncertain Crisis
Invest Like The Best

Episode 177: An Uncertain Crisis

Invest Like The Best

Episode 177

An Uncertain Crisis

Jeremy Grantham is the co-founder and chief investment strategist of Grantham, Mayo, & Van Otterloo (GMO). We cover investing during the Coronavirus crisis, opportunities for in investing natural resources, and why he's bullish on venture capital.

[00:01:37] – (First question) – What keeps him going in investing

[00:02:54] – Changing approaches to managing money over the decades

[00:07:27] – Their investment forecast for major allocations and how that has evolved

[00:10:06] – How the markets compete with FAANG stocks

[00:16:06] – More opportunity for active investors and where

[00:30:55] – How he talks to clients about major stock market events 

[00:34:09] – His interest in natural resources/commodities

[00:47:07] – Long term argument for the three natural resources: oil, metals, and food

[00:47:10] – An Investment Only A Mother Could Love: The Tactical Case

[00:52:01] – Specific case for particular metals

[00:56:46] – Areas in the future that excite him or that he wants to learn more about

[01:03:42] – Advice for people interested in investing

[01:05:15] – Kindest thing anyone has done for Jeremy

An Uncertain Crisis

Introduction

Patrick
So Jeremy, thank you so much for doing this with me today. You've had such a long and interesting career in the field of investing, that my opening question is a bit of a motivational one, which is, what is the thing that for you is the compulsion or the deep curiosity that keeps you going in the field of investing specifically, despite long and large success?

Jeremy
You've seen such a large transformation of both investing and capital markets over the years, what in your opinion stands out the most, from the perspective of someone trying to earn, we'll call it excess return, versus a very bland, broad market benchmark, what today is more important in that pursuit than was a few decades ago?

Jeremy
[00:03:18]I think that there has always been two major approaches to managing money. And one of them which was effective in the 1920s that is equally effective today is, at the individual stock level, in particular, to focus on unappreciated changes in the future. What is going to happen and deduce what the market thinks and look for unappreciated changes, good and bad, and bet against the market that your analysis has picked things up that the marketplace has missed. So fundamental, old-fashioned analysis is effective at anytime.

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