Jeremy Grantham: Persuade Yourself That The Investing World Is Typically Wrong

In this presentation with LiveWire Markets, Jeremy Grantham explains why the investing world is typically wrong. He argues that the investing world is too optimistic and too willing to go with the group, and that this leads to people making bad investment decisions. Here’s an excerpt from the presentation:

Grantham: Persuade yourself that the world is typically wrong.

The world is typically too optimistic, too willing to go with the group, and even on those rare occasions when it’s bearish it so attaches itself to the group that it can’t change its mind, and runs off the cliff and can’t get back on.

Hence you’re able to write, even as someone who is seen as a bear, I was able to write – reinvesting when terrified.

Get a plan together. Get your tail back in the stock market.

Of course you’re terrified.

That’s the nature of a major bear market. So stay clear of the crowd. Think for yourself, and recognize that they are on average optimistic.

It’s what we do. So we’re always looking for better outcomes than historically are typical.

You can watch the conversation here: