Money and Finance
- Gmo White Paper
Link to white paper: The World’s Dumbest Idea In this white paper, James Montier, a member of GMO's Asset Allocation team, presents evidence that bolsters his assertion that Shareholder Value Maximization has been a complete failure and has contributed...
- Cash Gives The Private Investor An Edge – By Merryn Somerset Webb
Fund managers don’t like holding cash, but individual investors can and should I wrote last week about the many ways in which traditional long only fund managers are institutionally prevented from performing as well as they should – given their above-average...
- Notes From The London Value Investor Conference 2013: Marks, Price, Montier & More
Via Market Folly. This was interesting: "James Montier said that GMO’s 7 year asset allocation model for US stocks is now predicting negative returns. GMO are now 50% in cash." Link to: Notes From the London Value Investor Conference 2013: Marks,...
- James Montier On 2008/2009...
James Montier’s answer to a follow-up question at the European Investing Summit 2012 (for those interested, the next Investing Summit is on Japan and will take place November 7-8....more information can be found HERE). Question: Going back to the lowest...
- Are You A Better Investor Than Fund Managers?
Earlier this week, I came across an interesting study by Andriy Bodnaruk of the University of Notre Dame and Andrei Simonov of Michigan State University, entitled "Do Financial Experts Make Better Investment Decisions?" The pair analyzed the personal...
Money and Finance
GMO investor clued up on human beings
Thanks to Phil for passing this along.
“Hi, my name is James Montier, and I’m a value investor. I haven’t bought an expensive stock for 25 years.”
GMO treats its own obsession with value investing with a touch of irony unusual in the fund management world, referring to asset allocation meetings as AA. Mr Montier, a member of that AA team, jokes about the addictive nature of its investment philosophy, but his twin obsession, behavioural finance, prompts him to recognise the greatest pitfall of working in such a focused culture.
“The danger is groupthink,” he says. Members of a group often find it easier to agree with what is being said than challenge it, particularly if led by a strong character such as Jeremy Grantham, GMO’s chief investment strategist.
It is easy to imagine, however, that any group comfortable with including Mr Montier is comfortable with debate. Although not in the least disreputable, the image he projects is far from the norm among fund managers. Turning up in jeans and somewhat ill-shaven to interviews, he initially seems as interested in talking about babies or his favourite iPad app as investment.
That is until he gets onto the topic of behavioural finance, the application of insights from psychology to finance and in particular financial decision-making.
……………….
Related book: The Little Book of Behavioral Investing
- Gmo White Paper
Link to white paper: The World’s Dumbest Idea In this white paper, James Montier, a member of GMO's Asset Allocation team, presents evidence that bolsters his assertion that Shareholder Value Maximization has been a complete failure and has contributed...
- Cash Gives The Private Investor An Edge – By Merryn Somerset Webb
Fund managers don’t like holding cash, but individual investors can and should I wrote last week about the many ways in which traditional long only fund managers are institutionally prevented from performing as well as they should – given their above-average...
- Notes From The London Value Investor Conference 2013: Marks, Price, Montier & More
Via Market Folly. This was interesting: "James Montier said that GMO’s 7 year asset allocation model for US stocks is now predicting negative returns. GMO are now 50% in cash." Link to: Notes From the London Value Investor Conference 2013: Marks,...
- James Montier On 2008/2009...
James Montier’s answer to a follow-up question at the European Investing Summit 2012 (for those interested, the next Investing Summit is on Japan and will take place November 7-8....more information can be found HERE). Question: Going back to the lowest...
- Are You A Better Investor Than Fund Managers?
Earlier this week, I came across an interesting study by Andriy Bodnaruk of the University of Notre Dame and Andrei Simonov of Michigan State University, entitled "Do Financial Experts Make Better Investment Decisions?" The pair analyzed the personal...