James Montier

James Montier

Postby winston » Sat Mar 12, 2011 7:08 am

Montier's seven immutable laws of investing

by Prieur du Plessis

James Montier, has just produced a white paper entitled The Seven Immutable Laws of investing.

In the paper, the GMO strategist presents a set of principles to guide sensible investment.


The principles are:

1. Always insist on a margin of safety

2. This time is never different

3. Be patient and wait for the fat pitch

4. Be contrarian

5. Risk is the permanent loss of capital, never a number

6. Be leery of leverage

7. Never invest in something you don't understand

Montier concludes as follows: I hope these seven immutable laws help you to avoid some of the worst mistakes, which, when made, tend to lead investors down the path of the permanent impairment of capital.

Right now, I believe the laws argue for caution: the absence of attractively priced assets with good margins of safety should lead investors to raise cash.

However, currently it appears as if investors are following Chuck Prince's game plan that as long as the music is playing, you've got to get up and dance.

Source: James Montier, GMO, March 2011.


http://www.investmentpostcards.com/2011 ... investing/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: James Montier

Postby winston » Mon Feb 20, 2017 6:43 pm

Avoid complacency and stay vigilant.

“One of the economists who has heavily influenced the way I think is Hyman Minsky, who always said, “Stability begets instability.”

The very idea is that the more stable things appear, the more dangerous the ultimate outcome will be because people start to assume everything will be all right and end up doing stupid things.”

- James Montier
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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