Jeremy Grantham
Jeremy Grantham📌 Mental Models

Jeremy Grantham's Mental Models 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·Mental Models

3 Key Mental Models Principles

#1

Multidisciplinary Thinking

"Draw insights from multiple disciplines — psychology, history, mathematics, and science — to build a lattice of mental models for better investment decisions."

Use insights from multiple disciplines for better decisions.

🌳 Advanced★★★★★
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#2

Probabilistic Thinking

"Think in probabilities, not certainties. Every investment has a range of possible outcomes. Weight your decisions by the expected value of each scenario."

Think in probabilities, not certainties.

🌳 Advanced★★★★★
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#3

Inversion Thinking

"Instead of asking how to succeed, ask how to avoid failure. Inverting problems often reveals insights that forward thinking misses."

Invert problems to find insights forward thinking misses.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are Jeremy Grantham's key mental models principles?

Jeremy Grantham has 3 key principles on mental models. The most important one is "Multidisciplinary Thinking" — Draw insights from multiple disciplines — psychology, history, mathematics, and science — to build a lattice of mental models for better investmen...

How does Jeremy Grantham apply mental models in practice?

Jeremy Grantham applies mental models through several key principles including "Multidisciplinary Thinking" and "Probabilistic Thinking". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes Jeremy Grantham's approach to mental models unique?

Jeremy Grantham's approach to mental models 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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