Jeremy Grantham is a Legendary Value Investor.
1. More risk doesn’t mean more reward
“You don’t get rewarded by taking risks, you get rewarded by buying cheap assets” – Jeremy Grantham
Many investors believe More risk equals more reward, this is not always true. As if in fact more risk equalled more reward the the asset wouldn’t be as risky.
The reason more risk tends to correlate with the “chance” of more reward is if an asset is risky, investors will stay away and thus this could leave an opportunity to “Buy cheap Assets”.
2. Buy Junk
“The Stock Market is overpriced, everything is overpriced, junk is king” – Jeremy Grantham (Legendary Investor)
In an overpriced stock market “buying junk” can often equal great success. As what the stock market perceives to be “Junk” may actually have some value. This is the foundation of a deep value investing strategy, popularised by Benjamin Graham.
3. Invest into Farmland
“The only investable idea I have real confidence in is farming & forestry” – Jeremy Grantham (Legendary investor)
As the age old wisdom goes “Invest into land because god isn’t making any more of it”. Legendary investors such as Warren Buffett have advocated investing into farmland for many decades (even his son is a farmer!) .
4. Invest into Farming (2)
“Modern agriculture is turning oil into food, as oil prices rise so will food prices” – Jeremy Grantham (Legendary)
We are experiencing this in 2021, with record inflation & oil prices skyrocketed simultaneously.
Many Billionaire Investors have been buying Farmland heavy such as Michael Burry “Big Short” and Bill Gates.
Gates is now the largest private farmland owner in the USA.
5. Volatility = Opportunity
“Financial Markets are very inefficient & capable of extremes…being dysfunctional” – Jeremy Grantham (Legendary investor)
As Billionaire Investor Howard Marks states the market moves in cycles from pessimistic to optimistic and back again. Although it’s difficult to know where we are going, we should know where we are in the Stock Market cycle.
Jeremy Grantham Quotes Gallery