James Montier, GMO. James is a member of GMO’s Asset Allocation team. Prior to joining GMO in , he was co-head of Global Strategy at Société Générale. In , value investor James Montier, a member of GMO’s asset allocation team, wrote the widely cited piece The Seven Immutable Laws of. James Montier, fresh from a presentation to clients of the $85bn Boston asset manager which employs him, is wearing Darth Vader cufflinks.

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This is a great part of the interview which delves into process details, behavioral biases, fmo to challenge your own views, and far more. Available for immediate download. If you continue to use this site we will assume that you are happy with it. To stream Episodeclick here.

The third possible path you could say is, well, seek alternatives, right? Do you want it relative to the benchmark? He talked about the investment industry as a newspaper beauty contest in which the objective is not to the prettiest face, but rather to pick the face that the average person thought the average person would find prettiest. So, using leverage, you need deep pockets and you need a degree of confidence about the path that asset is gonna take, which I think too kind of big hurdles to overcome.

James tells us that process is key.

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When you do that, what you get is pretty miserable outlook for the U. But James takes issue with this. There’s not a very good escape from that conondrum.

Well, it takes public companies and turns them private and then uses leverage. This one was a loser that jamea halved…then halved again…then again…then again….


James Montier on Applying the Seven Immutable Laws of Investing | MOI Global

James tells us fmo are really four options, yet not all have equal merit: Yeah, I think you framed it and this is a great way to think about it. Privacy Policy Terms of Use.

As the GMO strategist, who admits he can’t time bubbles, admits, “perhaps you are skilled at picking the managers with great timing ability, and perhaps those managers do have great timing ability, in which case, good luck. Was it the same as it was over the past few years? Listeners, I want you to think of a number in your head and you can write it down on a piece of paper throughout the gem, just put it in your head.

We are still dancing. So you can clearly see that the private equity is very much going to be a function of public equity. And as we know, from any asset and liability, they have to net to zero. Email Jeff at jr cambriainvestments.

James Montier on Applying the Seven Immutable Laws of Investing

So, I think as long as you think of alternatives as being different ways of owning standard risk, then you get an idea about what an alternative truly is. There’s a problem loading this menu right now.

The value investing genius who ran Tiger jqmes in the late s and he shut his from down in because he was using leverage and the valuation-based approach. Get to Know Us. You have my sympathies for a start.

The big argument that kind of people use to attack the Shiller PE is, well, includesand was a dreadful year reflecting What research topics are you focused on at GMO? If the presence of the proposed buyer of last resort rings a bell, it’s because that’s precisely the market environment the Fed has created: Ja,es are very few people who can actually do this, however.


Then you can see it in action in kind of There is an obsession with being seen to do something, action bias. Indeed, Montier concedes that ” cynical bubbles are based on a belief that one can get out before everyone else.

A year later, we interviewed James about the seven laws, as applied to the European financial crisis raging at the time. The conversation bounces around a bit before Meb steers it toward how we respond to this challenging market. Give me absolute best. To Montier this combination was not paradoxical per se, as much as exposing a the existence of that strangest of creatures: And you guys do so much work on valuation. You may end up needing very deep pockets — perhaps deeper than you have.

So, in the particular game I played, what we found was only three people out of 1, gom to pick under How do you hope to add value to the community? Meb then steers the conversation toward advisors who agree that U. Was that kind of why you changed the photo or…?

GMO’s James Montier’s 4 Solutions to Deal With a Terrible Market Outlook –

And the second being, debt is a huge burden on future generations. Montier doesn’t love this himself. Let Inspirato take care of the details, you can focus on making the most of your vacation. It owns the printing press.