Jeremy Grantham: Forget Private Equity And Regular Investing There’s A Better Option

Johnny HopkinsJeremy GranthamLeave a Comment

In his recent interview with Patrick O’Shaughnessy on the Invest Like The Best Podcast, Jeremy Grantham was asked what advice he would give to younger people interested in investing. Here’s an excerpt from the interview:

Patrick OShaughnessy:
I’d be curious what advice you would have for younger people interested in the field of investing, given all that you’ve learned across the span of your career, and knowing as much as you do about the current economic business investing landscape. What advice would you give a twentysomething that is interested in this field?

Jeremy Grantham:
I get asked that in real life, and my honest answer is go into venture capital. It gives you the same opportunity to use your brains, and your research, your analysis, but it’s more opportunity to use your imagination and to mix with people who are trying to change the world for the better, and it is useful.

Private equity and regular investing is shuffling shares between one player and another. It doesn’t change anything. I sell a share, you buy it, who cares? Venture capital is, you’re taking new money away from something else, and you’re putting it in to a new idea. You’re building a plant, small maybe, that would not have been built without your money.

You’re working on research that would not have been done. You’re producing products that would not have been produced. You are changing the world, and as it turns out, you are, in the end, going to be producing the next generation of FAANGs, and the great companies perhaps. It’s an opportunity.

Patrick OShaughnessy:
I love that answer.

Jeremy Grantham:
Yeah, no, that’s a nice, simple answer.

Patrick OShaughnessy:
I love it.

Jeremy Grantham:
It turns a bureaucratic job into a job that really makes a difference.

You can listen to the entire interview here:

Jeremy Grantham – Invest Like The Best Podcast.

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