Jeremy Grantham
Jeremy Grantham📌 Buying Principles

Jeremy Grantham's Buying Principles Rules

Jeremy Grantham (born October 6, 1938) is a British investor and co-founder of GMO (Grantham, Mayo, & van Otterloo), a Boston-based asset management firm managing over $60 billion in assets. He is renowned for his expertise in identifying and predicting market bubbles. Grantham successfully predicted the Japanese asset bubble in the late 1980s, the dot-com bubble in 2000, and the...

3 principles·Buying Principles

3 Key Buying Principles Principles

#1

Buy Below Intrinsic Value

"The cardinal rule of investing: buy only when the price is significantly below your conservative estimate of intrinsic value. This builds in protection against error."

Buy only at prices well below intrinsic value.

🌿 Intermediate★★★★★
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#2

Wait for the Right Opportunity

"The stock market is a no-called-strike game. You don't have to swing at every pitch. Wait for the fat pitch — the opportunity that offers exceptional risk-reward."

Wait for exceptional risk-reward opportunities.

🌿 Intermediate★★★★★
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#3

Research Before Buying

"Never invest in anything you don't fully understand. Thorough research is the foundation of every sound investment decision."

Thorough research precedes every sound investment.

🌱 Beginner★★★★★
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Frequently Asked Questions

What are Jeremy Grantham's key buying principles principles?

Jeremy Grantham has 3 key principles on buying principles. The most important one is "Buy Below Intrinsic Value" — The cardinal rule of investing: buy only when the price is significantly below your conservative estimate of intrinsic value.

How does Jeremy Grantham apply buying principles in practice?

Jeremy Grantham applies buying principles through several key principles including "Buy Below Intrinsic Value" and "Wait for the Right Opportunity". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes Jeremy Grantham's approach to buying principles unique?

Jeremy Grantham's approach to buying principles is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Jeremy Grantham provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.

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