#1
Mean Reversion
"Asset class returns revert to the mean. High valuations predict low future returns; low valuations predict high returns."
High valuations predict low future returns.
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Jeremy Grantham⚖️ Value Assessment
Jeremy Grantham's Value Assessment 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·Value Assessment
3 Key Value Assessment Principles
#2
Emerging Markets Value
"Emerging markets often offer better value than developed markets. Dont ignore them."
Emerging markets offer structural value.
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Value Discipline
"Never overpay for a security, no matter how exciting the story. The price you pay determines your return. Discipline in valuation is the foundation of investment success."
Discipline in valuation determines investment success.
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What are Jeremy Grantham's key value assessment principles?
Jeremy Grantham has 3 key principles on value assessment. The most important one is "Mean Reversion" — Asset class returns revert to the mean.
How does Jeremy Grantham apply value assessment in practice?
Jeremy Grantham applies value assessment through several key principles including "Mean Reversion" and "Emerging Markets Value". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Jeremy Grantham's approach to value assessment unique?
Jeremy Grantham's approach to value assessment 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.
