James Montier: Why Does Everyone Hate MMT?

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James Montier recently released a great paper titled – Why Does Everyone Hate MMT?, Groupthink in Economics. In the paper he argues that MMT is misunderstood by the ‘great and the good’ such as Rogoff, Krugman, and Summers, saying: Modern Monetary Theory (MMT) seems to provoke a visceral reaction amongst the ‘great and the good’ such as Rogoff, Krugman, and … Read More

James Montier: How To Protect Yourself From Wall Street’s ‘Self-Serving’ Biases

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In his book – The Little Book of Behavioral Investing, James Montier wrote a great passage on how investors can identify and protect themselves from becoming victims of Wall Street’s self-serving biases. Here’s an excerpt from that book: So much for nature. Nurture also helps to generate the generally rose-tinted view of life. Psychologists have often documented a “self-serving bias ” … Read More

James Montier – The World’s Dumbest Idea – Shareholder Value Maximization

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Some years ago, James Montier wrote a great paper called – The World’s Dumbest Idea, that explored the problems surrounding the concept of shareholder value and its maximization saying: “Before you dismiss me as a raving “red under the bed,” you might be surprised to know that I am not alone in questioning the mantra of shareholder value maximization. Indeed … Read More

James Montier: You Can Turn Behavioral Biases Into An Advantage Using A Valuation-Based Framework

Johnny HopkinsJames Montier2 Comments

We’ve just been listening to a great interview with James Montier on Meb Faber’s podcast. During the interview Montier provides some great insights to help investors protect themselves from their behavioral biases. Montier says that you can actually turn behavioral biases, like anchoring, into an advantage using a valuation-based framework. Here’s an excerpt from that interview: Having the advantage of … Read More

James Montier: “Finance Has Turned The Art Of Transforming The Simple Into The Perplexing Into An Industry”

Johnny HopkinsInvesting StrategyLeave a Comment

Some years ago James Montier wrote a great paper called – Was It All Just A Bad Dream? Or, Ten Lessons Not Learnt. Montier’s states that we can learn a great deal about investing by looking back at the mistakes that gave rise to the worst period in markets since the Great Depression saying: “It appears as if the market declines of 2008 … Read More

James Montier – Here’s How Soros Successfully Safeguards Against Making Recurring Mistakes

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As investors we all pat ourselves on the back, telling ourselves how smart we are when a stock that we picked outperforms. At the same time we can find dozens of reasons, excluding our own poor judgement, when another stock pick gets hammered. The reason in behavioral investing terms is called self-attribution bias. Self-attribution bias is our habit of attributing … Read More

If You’re Having Trouble Finding Undervalued Stocks Today, Here’s One Reason Why – GMO

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GMO recently released a white paper titled The S&P 500: Just Say No, by Matt Kadnar and James Montier. The paper questions the validity of throwing in the towel and simply indexing all of our equity exposure to the S&P 500. Of particular interest to us here at The Acquirer’s Multiple is Montier’s deep value screen, which he has regularly run over time … Read More

James Montier – There Are No Silver Bullets In Investing (Just Old Snake Oil In New Bottles)

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According to the Cambridge dictionary a snake oil salesman is: someone who deceives people in order to get money from them: He was dubbed a “modern day snake oil salesman” after he ripped off thousands of internet customers. So why is it that so many investors are continually happy to part with millions of dollars to the latest snake oil … Read More

James Montier – This Is The Time To Sit There And Do A Winnie the Pooh. Here’s Why.

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One of the firms we like to watch closely is Boston-based asset manager GMO, and one member of its asset management team, James Montier. Montier recently did an interview with Finanz und Wirtschaft (Finance and Economic) in which he discusses the current over-valuation in U.S. equity markets saying, “Equities are currently the third highest in valuation terms we have ever seen. … Read More