Category Archive

During this interview with Schroders, James Montier explains why value investing provides behavioral self-defence. Here’s an excerpt from the interview: Montier: That value approach is inherently long-term and it gives you a margin of safety – and then whether you meet company managements or not is up to you. But … Read More

A staggering 77% of Americans fear soaring inflation. James Montier has a more sanguine view of inflationary risks. In this session at the GMO Fall Conference, James explored some of the tall tales and true causes of inflation. He also explained what investors can do from a portfolio perspective if … Read More

In his book – Value Investing: Tools and Techniques for Intelligent Investment, James Montier provides a great illustration of the human bias towards growth/glamour stocks. Here’s an excerpt from the book: Interestingly a recent psychology study may well relate to these findings. Taylor and Butcher (2007) gave 96 students identical accounts … Read More

In his book – Value Investing: Tools and Techniques for Intelligent Investment, James Montier discusses the dangers of diversification. Here’s an excerpt from the book: If religion has been the cause of most wars, then ‘diversification’ lies close to the heart of many financial disasters. All too often, too narrow … Read More

In his book – The Little Book of Behavioral Investing, James Montier discloses that investors sell more winners than losers. Here’s an excerpt from the book: Putting the dislike of losses and the willingness to gamble in the face of potential losses together gives us some powerful insights into investors’ … Read More

In his latest white paper titled – Part 2: What to Do in the Case of Sustained Inflation, James Montier discusses hedges against sustained inflation. He also discusses a simple thought experiment on the difficulties of creating your own currency, digital or otherwise. Here’s an excerpt from the paper: There … Read More

In his latest paper titled – Part 1: Inflation – Tall Tales And True Cases – Much Ado About Nothing, James Montier discusses why the upsurge in inflation angst is much ado about nothing. Here’s an excerpt from the paper: Inflation is often a poorly understood concept, with monotheistic explanations … Read More

James Montier recently wrote a great memo titled – Dare To Be Different, in which he discusses the idea of focusing on value stocks in emerging markets to generate outsized returns. Here’s an excerpt from the memo: The conventional 60/40 portfolio of today is not going to generate the kind … Read More