Jeremy Grantham’s quarterly GMO letter is out. It is a long rambling look at everything from Tesla to Fracking to Fertilizers to Food.
But the narrative culminates with how as a young lad, Grantham made a trade based on a neighbor — legal inside information. He explains how that worked out, via his 8 lessons learned during his tenure on Wall Street.
Investment Lessons Learned: Mistakes Made Over 47 Years
1) Inside advice, legal in those days, from friends in the company is a particularly dangerous basis for decisions; you know little how limited their knowledge really is and you are overexposed to sustained enthusiasm.
2) Always diversify, particularly for your pension fund.
3) Fraud, near-fraud, or colossal incompetence can always strike.
4) Don’t buy stocks yourself if you’re an amateur: invest with a relatively rare expert or in a low-cost index.
5) Investing when young will start your brain turning on things financial.
6) Painful errors teach you more than success does.
7) Luck helps and finally…
8) Have a convenient mother to be the fall guy.
Year-End Odds and Ends
GMO FEBRUARY, 2014
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
3 Responses to “Jeremy Grantham: Mistakes Made Over 47 Years”
Leave a Reply
You must be logged in to post a comment.