During this interview with Bloomberg, Jeremy Grantham discussed the worst mistake that the average investor makes. Here’s an excerpt from the interview:
They get far too enthusiastic. And I understand that. I can get pretty enthusiastic about about new deals, new start ups when people are presenting them.
I like to leave those decisions to my colleagues who have better discipline.
So I understand getting carried away and I invested in that first bubble of 1968 and managed to make a small fortune and lose it. And after that I became a completely die hard value manager.
Where To Invest Now
I think a global index fund that that had most of its money outside the U.S. And if they were up to it, I would say only invest outside the U.S for the time being.
Because this overpricing in the market is mainly a U.S event. The markets outside the U.S are not particularly overpriced.
You can watch the entire discussion here:
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