📖Jeremy Grantham
Patience Is Alpha
Patience is the ultimate competitive advantage.
In a world obsessed with quarterly results, patience is the ultimate competitive advantage. Great investments often take years to play out fully.
🏠 Everyday Analogy
📖 Core Interpretation
Jeremy Grantham frames investing as a compounding game. Time amplifies quality and discipline, while unnecessary activity often destroys long-horizon returns.
💎 Key Insight：Long-term orientation creates opportunities others miss.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Short-term noise often forces investors out before value is realized. Long-term discipline increases the odds that fundamentals, not emotions, drive outcomes.
🎯 How to Practice
Extend research and review horizon, reduce unnecessary turnover, and adjust only when intrinsic value, risk, or opportunity cost materially changes.
⚠️ Common Pitfalls
Calling it long term while never reviewing thesis
Overtrading and damaging compounding
Ignoring opportunity cost and alternatives
📚 Case Studies
1
Dot-Com Bubble Warning (2000)
Grantham publicly warned in 1998–2000 that tech stocks were in a massive bubble, reducing GMO client exposure to overvalued growth and internet shares.
✨ Outcome：Clients underperformed during the final surge, but avoided most of the 2000–2002 crash and preserved substantial capital.
2
Housing and Credit Bubble Call (2007)
Grantham labeled 2005–2007 a global housing and credit bubble, slashing exposure to risky mortgage-linked and leveraged financial assets before the crisis hit.
✨ Outcome：Underperformance before mid-2007, then strong relative results during the 2008 crash as portfolios were less exposed to collapsing financials.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →