#1
Asset Allocation Focus
"Most returns come from asset allocation, not security selection. Get the big picture right first."
Asset allocation drives most portfolio returns.
Read Full Analysis →
Jeremy Grantham🛡 Risk Management
Jeremy Grantham's Risk Management 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·Risk Management
3 Key Risk Management Principles
#2
Manage Career Risk
"The biggest risk for professional investors is career risk, not investment risk. This distorts behavior."
Career risk prevents rational investment decisions.
Read Full Analysis →#3
Risk-First Approach
"Before considering how much you can make, consider how much you can lose. Risk management is not about avoiding risk entirely, but about understanding and controlling it."
Consider the downside before the upside.
Read Full Analysis →Frequently Asked Questions
What are Jeremy Grantham's key risk management principles?
Jeremy Grantham has 3 key principles on risk management. The most important one is "Asset Allocation Focus" — Most returns come from asset allocation, not security selection.
How does Jeremy Grantham apply risk management in practice?
Jeremy Grantham applies risk management through several key principles including "Asset Allocation Focus" and "Manage Career Risk". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Jeremy Grantham's approach to risk management unique?
Jeremy Grantham's approach to risk management 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.
