Jeremy Grantham Pulls Back: What His Latest Sales Say About the Market

Each week, we unpack the latest high-conviction trades from legendary investors — revealing what they’re doubling down on, cutting loose, or quietly walking away from.

In the most recent quarter, Jeremy Grantham significantly reduced or nearly eliminated several positions in his portfolio. The sharpest percentage declines were concentrated in stocks that may have either reached valuation targets, fallen out of favor due to macro risks, or no longer aligned with his firm’s long-term environmental, social, and governance (ESG) priorities.

Here are the top five reductions by percentage:

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1. Gentex Corp (GNTX) – ↓98.15%

Gentex, an automotive parts supplier, saw a dramatic reduction of over 1.2 million shares. This near-elimination suggests a shift away from traditional auto supply exposure, possibly due to cyclical concerns or a pivot toward higher-growth, ESG-aligned holdings.

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2. Berkshire Hathaway Inc. Class B (BRK.B) – ↓95.65%

A surprising trim, considering Berkshire’s reputation as a stable compounder. However, Grantham has previously criticized broad U.S. equity valuations, and this may reflect a view that even conservative blue-chips like Berkshire are overpriced. Alternatively, it could be a portfolio reallocation move to free up capital for other priorities.

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3. Las Vegas Sands Corp (LVS) – ↓95.26%

The significant reduction in this casino and hospitality stock may reflect concerns about the cyclical nature of travel and leisure, ongoing regulatory risks in Asia, or the company’s limited alignment with ESG themes.

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4. Canadian Pacific Kansas City (CP) – ↓91.48%

The sharp drop in this railroad holding could indicate a reassessment of North American industrial exposure or concerns over demand softness in goods transportation amid economic uncertainty.

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5. 3M Company (MMM) – ↓90.97%

3M faces both legal overhangs (related to PFAS and military earplugs) and operational challenges. The large selloff may indicate a lack of confidence in its near-term turnaround or concerns about long-term liabilities affecting intrinsic value.

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Our Interpretation of the Sales Strategy

Grantham’s portfolio changes suggest a deliberate downsizing of lower-conviction or potentially overvalued names, particularly those with cyclical exposure or ESG risk. Known for his bearish macro stance and climate-oriented investing approach at GMO, these reductions likely reflect both a market valuation call and a strategic reshuffling toward more sustainable or resilient assets.