James Montier, GMO. James is a member of GMO’s Asset Allocation team. Prior to joining GMO in , he was co-head of Global Strategy at Société Générale. James Montier’s book Value Investing is essential reading for value investors. With markets falling due to fears over China’s economy – the. “”As with his weekly column, James Montier’s Value Investing is a must read for all students of the financial markets. In short order, Montier shreds the ‘efficient.
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Montier lets his interests in value and investor behavior show as he progresses through the book in a well-structured way.
Don’t just take action for action’s sake, particularly after losses. Nov 21, Steve Bradshaw rated it it was ok Shelves: Top Reviews Most recent Top Reviews.
There’s a problem loading this menu right now. A great quote from the book comes from Third Avenue Management who said “DCF is like the Hubble telescope, if you move it an inch you end up studying a different galaxy”.
Forced selling can create opportunities. Buying a cheap stock only to see it become cheaper is difficult but knowing that I’m unlikely to pick the bottom, I always make my initial purchase just a portion of my intended total investment in a stock. I advise everyone to read andstudy this wonderful book. Tools and Techniques for Intelligent Investment toadd to their required reading. In his view, a successful long-term value investor must by definition be eccentric, willing to be different from the crowd to achieve different results.
Montier also, like his current colleague at GMO, Jeremy Grantham, leans heavily on behavioral science and modern advancements in social psychology to make sense of the “madness of the crowds”, and of market bubbles and anomalies.
However, the charts can be obtrusive and hard to follow, as they do not align with the text well and rarely have labeled axes. Also, Montier has a middle school girl’s infatuation for the exclamation point!
8 investing tips from James Montier – InvestSMART
Minor frustrations, though, over what is an otherwise insightful and noteworthy book. I learned for more from this book than I did from Corporate Finance. The book comes with recommendations from people like Seth Klarman and Michael Mauboussin and the foreword is written by Bruce Greenwald. Montier also, like his current colleague at GMO, Jeremy Grantham, leans heavily on behavioral science and modern adva James Montier is a disciple of the great value investors: Be patient Tenet IV: The seductive elegance of classical finance theory is powerful, yet value investing requires that we reject both the precepts of modern portfolio theory MPT and pretty much all of its tools and techniques.
To fight these tendencies, a read of this book may help. invsting
It takes an unusual manager to deliberately cultivate dissent. It’s easy to think about how much money you can make but you also need to consider how much you can lose and the respective probabilities of each the ‘expected value’, in mathematical jargon. This makes it a bit less fluent and fresh than it could have been. He has been a top-rated strategist in the annual Thomson Reuters Extel survey for the last five years.
Every serious investor should have a copy in his or her library. Gambling, Sport and Investment! Or, Am I Clinically Depressed? Write a customer review.
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Amazon Drive Cloud storage from Amazon. Eric Connerly rated it it was ok Sep 18, To get the free app, enter your mobile phone number. James shows you why everything you learnt at business school is wrong; how to think properly about valuation and risk; how to avoid the dangers of growth investing; how to be a contrarian; how to short stocks; how to avoid value traps; how to hedge ignorance using cheap insurance.
Although, he does believe DCFs are useful in reverse engineering market-implied assumptions. It provides you with the tools to start thinking in a different fashion about the way in which you invest, introducing the ways of over-riding the emotional distractions that will bedevil the pursuit of a value approach and ultimately think and act differently from the herd.
James Montier is a disciple of the great value investors: No trivia or quizzes yet. Buy this book for yourself, and for anyone you know who cares about their capital!
Simply put, the best, most comprehensive book on value investing I’ve ever read. Mastering the Market Cycle: Books by James Montier. Treat your clients as you would treat yourself I have a lot of respect for GMO Montier’s firmbut my biggest disappointment with Value Investing is what I find to be all-too-common among folks who say, “everything you know is wrong.
A common distraction Montier strongly opposes is the capital asset pricing model CAPMwhich he calls “insidious”. Also, Montier has a middle school girl’s infatuation for the exclamation point! Please try again later. As Montier notes, even if actual future growth turns out to be very high but still less than expected, high-flying stocks often become more reasonably priced over time.
I hope I can use this knowledge in the real world. I’m a big fan of the author, but this is not a good book. I think this book is one you should go through quickly and use the summaries if you are already in the value investing camp, as much even too much of the book is just backing to claims you probably already believe. Cycles matter Tenet VII: He could also be clearer on what exactly investors should do, although what we should not do is well-explained.
Enabled Amazon Best Sellers Rank: It provides you with the tools to start thinking in a different fashion about the way in which you invest, introducing the ways of over-riding the emotional distractions that will bedevil the pursuit of a value approach and ultimately think and act differently from the herd. Montier pays lip service to this idea, but that isn’t really what he advocates in a lot of the book.
How not to be your own worst enemy or if you are very serious about learning this then buy A Practitioners Guide to Applying Behavioral Finance, which is a very well written full account of the subject.