Jeremy Grantham
Jeremy Grantham📌 Investment Psychology

Jeremy Grantham's Investment Psychology 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·Investment Psychology

3 Key Investment Psychology Principles

#1

Master Your Emotions

"The greatest enemy of the investor is himself. Fear, greed, regret, and pride cause more losses than any economic event. Master your emotions to master the market."

Master your emotions to master the market.

🌿 Intermediate★★★★★
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#2

Behavioral Bias Awareness

"Know the common behavioral biases that trap investors: anchoring, confirmation bias, loss aversion, and herding. Awareness is the first step to prevention."

Know your behavioral biases to avoid them.

🌿 Intermediate★★★★☆
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#3

Independent Thinking

"Think independently. The crowd is often wrong at extremes, and following popular opinion is a reliable path to mediocre returns. Form your own informed views."

Think independently from the crowd.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are Jeremy Grantham's key investment psychology principles?

Jeremy Grantham has 3 key principles on investment psychology. The most important one is "Master Your Emotions" — The greatest enemy of the investor is himself.

How does Jeremy Grantham apply investment psychology in practice?

Jeremy Grantham applies investment psychology through several key principles including "Master Your Emotions" and "Behavioral Bias Awareness". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes Jeremy Grantham's approach to investment psychology unique?

Jeremy Grantham's approach to investment psychology 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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