📖Jeremy Grantham
Continuous Improvement System
Treat investing as a craft that can always improve.
Review every investment decision — wins and losses — to improve your system. The best investors treat investing as a craft that can always be refined.
🏠 Everyday Analogy
📖 Core Interpretation
Jeremy Grantham treats survival as the first objective. Limiting permanent capital loss, controlling leverage, and avoiding single-point failure are prerequisites for long-term compounding.
💎 Key Insight：Post-mortem analysis drives systematic improvement.
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❓ Why It Matters
A single large drawdown can erase years of progress. Risk control is not timidity; it is the operating system that keeps compounding alive.
🎯 How to Practice
Define downside scenarios before entry, cap position size, avoid fragile leverage, and maintain liquidity so mistakes remain survivable.
⚠️ Common Pitfalls
Equating volatility with all forms of risk
Oversized positions without an exit plan
Using leverage to compensate for uncertainty
📚 Case Studies
1
Pre‑Crisis Housing and Credit Bubble (2007)
Grantham highlighted extreme overvaluation in housing, credit, and equities, cutting risk assets and raising quality and cash.
✨ Outcome：The 2008–2009 crash validated his forecast; defensive positioning preserved capital and enabled cheaper re‑entry afterward.
2
Avoiding the Tech Bubble (1999)
Grantham underweighted expensive tech stocks despite client pressure as valuations broke from historical norms.
✨ Outcome：Clients lagged during the final bubble phase but were largely spared the 2000–2002 crash, preserving capital and careers for patient managers.
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