Jeremy Grantham: The Worst Mistake That The Average Investor Makes

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: