📖Jeremy Grantham
Market as Your Servant
Use the market as your servant, not your guide.
The market exists to serve you, not to guide you. Use market prices to your advantage — buy when the market offers bargains and sell when it offers premiums.
🏠 Everyday Analogy
📖 Core Interpretation
In Market as Your Servant, Jeremy Grantham focuses on the gap between price and value. Returns come from paying less than what a business is worth, not from guessing short-term market moves.
💎 Key Insight：The market offers prices; you decide whether they're fair.
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❓ Why It Matters
Ignoring valuation turns even good companies into poor investments. Overpaying compresses future returns and leaves little margin when assumptions are wrong.
🎯 How to Practice
Estimate intrinsic value with conservative assumptions, set clear buy ranges, and act only when price offers a meaningful discount with acceptable downside.
⚠️ Common Pitfalls
Confusing a low price with true cheapness
Using one metric without business context
Overly optimistic assumptions that erase margin of safety
📚 Case Studies
1
Oil and Commodity Spike (2008)
Global demand, limited supply, and speculation drove oil above $140 and broad commodities sharply higher, echoing Grantham’s warnings on finite resources.
✨ Outcome：Investors in energy and resources benefited near‑term; subsequent crash hurt late entrants but reinforced long‑run scarcity thesis.
2
Agricultural Commodity Tightness (2011)
Extreme weather, rising emerging‑market diets, and constrained arable land triggered sharp rises in grain and food prices, consistent with Grantham’s resource‑scarcity framework.
✨ Outcome：Ag, fertilizer, and farmland investments outperformed; volatility later normalized, but structural pressure on food systems remained evident to long‑term investors.
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