We have a very special guest for you in this episode: Jeremy Grantham, the legendary investor who co-founded GMO, a Boston-based institutional money management firm, more than 40 years ago. With more than $60 billion in assets under management, GMO has produced steady returns for its investors through market booms and busts, largely thanks to the steady hand of Grantham and his investing philosophy, which holds that sooner or later, most valuations return to the mean.

In this interview, we talked about Grantham’s investing philosophy; the history of investment bubbles; how he values investments; what’s happening in the markets as new retail traders using the Robinhood app and participating in Reddit-based trading groups drive stocks like Game Stop wild; what the Fed should do as the world recovers from the pandemic; his views on the massive expansion of the US national debt; how the world’s governments are responding to the challenge of climate change; the role of venture capital in energy transition; and his outlook for energy transition in general.

Guest: Jeremy Grantham co-founded GMO, a Boston-based institutional money management firm, in 1977 and is a member of GMO’s Asset Allocation team, serving as the firm’s long-term investment strategist. He is a member of the GMO Board of Directors and has also served on the investment boards of several non-profit organizations. Prior to GMO’s founding, Mr. Grantham was co-founder of Batterymarch Financial Management in 1969 where he recommended commercial indexing in 1971, one of several claims to being first. He began his investment career as an economist with Royal Dutch Shell. Mr. Grantham earned his undergraduate degree from the University of Sheffield (U.K.) and an M.B.A. from Harvard Business School. He is a member of the Academy of Arts and Sciences, holds a CBE from the UK and is a recipient of the Carnegie Medal for Philanthropy.

On the Web:  http://www.gmo.com

Recording date: February 15, 2021

Air date: March 31, 2021

Geek rating: 5

 

Teaser photo credit: South Sea Bubble Card By Unknown author – Scanned from reprint of 1841/1852 editions of "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay, LL. D. ISBN 1-5866-3558-1, Public Domain, https://commons.wikimedia.org/w/index.php?curid=2821680