Booms and busts covering six decades
Jeremy Grantham entered the investment business in the ’60s, when he brought the thrifty Quaker values and Yorkshire Independence he had been raised with. While other money managers were focused on blue chip stocks, he studied the stock market history and constructed by hand the first indices for small-cap and value stocks. Charting their ebb and flow, he could see clearly the powerful force that would become central to his investment philosophy: mean reversion, “the heartbreaking principle that good times always revert back to more boring, more ordinary times.” In the early ’70s Grantham was a pioneer of index investing. … Continue reading Booms and busts covering six decades
