Jeremy Grantham – Bubbles, Value Investing, and the Long Game at GMO (EP.493)

Jeremy Grantham, co-founder of GMO, shares insights on investing, market bubbles, and long-term strategies, drawing from his six-decade career. He emphasizes the importance of frugality, a lesson learned growing up in wartime Yorkshire, and how it shaped his value-oriented investment approach. Grantham recounts the dot-com bubble's painful lessons, highlighting the career risk associated with fighting a bull market and the necessity of independence in taking contrarian bets. He also touches on identifying market bubbles using historical patterns, such as the underperformance of leading stocks, and applies this framework to the current AI investment boom, cautioning about potential overinvestment. Furthermore, Grantham discusses the challenges of long-term thinking in both investing and addressing environmental issues, advocating for a shift towards sustainable capitalism.