Ten Lessons (Not?) Learnt

When he was at Societe  Generale, I very much enjoyed the work of James Montier. He is now working with Jeremy Grantham at GMO.

I have two of James’ books in my queue, Behavioural Finance: Insights into Irrational Minds and Markets (2002) and Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance (2007).

He hasn’t begun publishing officially yet, but this slide deck has been making the rounds: Ten Lessons (Not?) Learnt:

Markets Aren’t Efficient
Relative Performance is a Dangerous Game
This Time is Never Different
Valuation Matters (in the Long Run)
Wait for the “Fat” Pitch
Sentiment Matters
Leverage Can’t Turn a Bad Investment Good
Beware of Over Quantification
There is No Substitute for Skepticism
The Benefits of Cheap Insurance

The full GMO piece  can be found here.

Hat tip Trader’s Narrative

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