Grantham, Mayo, & van Otterloo (GMO), a Boston-based asset management business, was founded by Robert Jeremy Goltho Grantham, a British investor and co-founder and chief investment strategist.
From 2007 through 2010, he was an outspoken critic of different government approaches to the Global Financial Crisis.
In the early 1970s, Grantham founded one of the earliest index funds in the world.
Bloomberg Markets magazine named him one of the top 50 most influential people in the world in 2011.
Let’s go through some of the most popular quotes from Jeremey Grantham.
Jeremy Grantham Quotes on Investing and Stock Market
Equities are boring; bonds are disgusting. Jeremy Grantham.
I believe the only things that really matter in investing are the bubbles and the busts. Jeremy Grantham.
You can’t run the economy on BMWs alone. If the average person is in a pickle, how do you have a healthy economy? Jeremy Grantham.
Although value is a weak force in any single year, it becomes a monster over several years. Like gravity, it slowly wears down the opposition. Jeremy Grantham.
Modern agriculture has been accurately described as a way of turning oil into food. As the price of oil continues to rise, so will the price of food. Jeremy Grantham
Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert, then something has gone badly wrong with capitalism. If high profits do not attract competition, there is something wrong with the system and it is not functioning properly. Jeremy Grantham
If stocks are attractive and you don’t buy, you don’t just look like an idiot, you are an idiot. Jeremy Grantham
You don’t get rewarded for taking risk; you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because they were risky, then you are not going to be rewarded for taking a risk; you are going to be punished for it. Jeremy Grantham
I find the parallels between how some investors refuse to recognize the trends and our reaction to some of our environmental challenges very powerful. There is an unwillingness to process unpleasant data. Jeremy Grantham
Capitalism believes that its remit is exclusively to make maximum short-term profits. Jeremy Grantham
Battering down solar cells on the roofs of Wal-Marts in California. I think that will be some of the highest-return investments that anyone ever makes. Jeremy Grantham
There is no single theory that is used in economics that considers the finite nature of resources. Its shocking. Jeremy Grantham
We live on a finite planet. We have finite resources, and we’re running out of good, arable land. Jeremy Grantham
At least us old men remember what a real bear market is like, and the young men haven’t got a clue. Jeremy Grantham
By background I’m both a Quaker and a Yorkshireman, which I like to call double jeopardy. Jeremy Grantham
I would say that financial markets are very inefficient, and capable of extremes of being completely dysfunctional. Jeremy Grantham
The potential for alternative energy sources, mainly solar and wind power, to completely replace coal and gas for utility generation globally is, I think, certain. The question is only whether it takes 30 years or 70 years. Jeremy Grantham
The world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value. We all need to adjust our behavior to this new environment. It would help if we did it quickly. Jeremy Grantham
The language ‘It’s too late’ is very unsuitable for most environmental issues. It’s too late for the dodo and for people who’ve starved to death already, but it’s not too late to prevent an even bigger crisis. The sooner we act on the environment, the better. Jeremy Grantham
I think I’m right-brained, incapable of managing my way out of a brown paper bag. Jeremy Grantham
I like to be right. I try not to miss the big ideas, forget the little ones, and try to get them right. End of job description. Jeremy Grantham
Americans are just about the worst at dealing with long-term problems, down there with Uzbekistan, but they respond to a market signal better than almost anyone. They roll the dice bigger and quicker than most. Jeremy Grantham
Think how weird profit margins are: We’ve got high unemployment and financial crises – and world record profit margins. People think the American market is very cheap. We don’t. The market quite incorrectly gives full credit to today’s earnings. Jeremy Grantham
The pure administration of Graham-and-Doddery really needs a long-term lock-up like Warren Buffett has, or it will have occasional quite dreadful client problems. Jeremy Grantham
It is better to be lucky than good, but of course appropriate to aspire to both. Jeremy Grantham
The stock market is overpriced. Everything is overpriced. Junk is king. Jeremy Grantham
Remember that history always repeats itself. Every great bubble in history has broken. There are no exceptions. Jeremy Grantham
The individual is far better-positioned to wait patiently for the right pitch while paying no regard to what others are doing, which is almost impossible for professionals. Jeremy Grantham
Market timing, by the way, is a tag some buy-and-hold investors use to put down anything that involves using your brain. These are the same people who like to watch the locomotive coming and get run down in the name of discipline. Jeremy Grantham
Volatility is a symptom that people have no idea of the underlying value. Jeremy Grantham.