📖Jeremy Grantham
Know Your Limits
Stay within your circle of competence.
The most successful investors stay within their circle of competence. Know what you understand well and resist the temptation to venture outside it.
🏠 Everyday Analogy
📖 Core Interpretation
Jeremy Grantham advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Self-awareness about knowledge limits prevents costly mistakes.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
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.
2
Early Exit Before Global Financial Crisis (2007)
GMO reduced risk in equities and housing-related assets as Grantham warned of a major credit and housing bubble.
✨ Outcome：Some clients left due to short-term underperformance, but remaining investors suffered far smaller losses in 2008–2009, validating a risk-first approach.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →