Legendary billionaire investor Jeremy Grantham is an expert in stock market bubbles. In the 1980s, he spotted the Japanese bubble. He also, rightly, refused to rush into the tech bubble that popped dramatically during the dotcom crash.<br>Now, with all eyes on the astronomical valuations AI firms are commanding, does he think a bubble is emerging?<br>MoneyWeek Talks is a podcast that helps you unlock the secrets to financial success, where experts share their top tips on managing money, investing wisely and building wealth. Subscribe to the MoneyWeek Talks podcast and get ready to make it, keep it and spend it.

Jeremy Grantham: How to invest like a stock market legend

MoneyWeek Talks

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**Podcast:** MoneyWeek Talks

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People don't realize that the more obvious and important the idea, the more likely you are to attract too much capital and have a capital bust and a market bust. The railroads transformed our lives, they added enormous productivity, and yet they were so obviously going to do that, that everyone built too many railroads, as they say, from Leeds to Manchester, and everybody lost their money. And that will happen in AI.

Hello, I'm Andrew Van Sickle, Editor-in-Chief of MoneyWeek Talks. Welcome to another episode of MoneyWeek Talks. Today, I'm very lucky to be joined by one of the world's best investors, someone MoneyWeek has been quoting for over 20 years. Jeremy Grantham, originally from Yorkshire, is the co-founder and long-term investment strategist of asset management group GMO, which is based in Boston. Jeremy's reputation is based on his ability to spot bubbles.

Jeremy Grantham, which is the most famous example in the world's best known as from China. And the history

investing in a short-term world. You should definitely get yourself a copy. It was published earlier this year. Welcome, Jeremy. Thank you very much for joining us. It's a pleasure to be here. Now, Jeremy, we learned from your book that you weren't always a patient long-term value investor. I greatly enjoyed the section in the late 60s. You say you became what you describe as a gunslinging nitwit in an expensive market, but you came a cropper with a couple of stocks.

Will you tell us a bit about that episode and how it became a formative moment? Well, the most exciting part about it was before it broke, it made me a fortune. I'd been deciding to stay in America just long enough to make enough money to go back to England and live like a prince. My modest definition of a prince was that you had enough money to buy a

decent house without a mortgage and a decent car. That was it. And I started out of business school with a deficit of about $6,000. And due to a series of successful speculations, I fairly quickly had a positive account. And until we come to the defining story that just after I got my first job in the

investment business, came up to Boston and joined this kind of lunch club of gunslinging kids fresh out of business school. And every time we met, someone would have a hot story. And typically, they would go up and typically, they would come down in the not too distant future after that. And came across at a critical week, we were just leaving for England and Germany. I married a

German woman. And the stock of the day was American Raceways. And it had Sterling Moss, the then world champion or nearly world champion on the board. And it was going to introduce Formula One to the United States. Seemed like an obvious idea, you know, power and noise and blood and death. And it

seemed desperately American. And we, American Raceways bought one track in the middle of the country. And everyone showed up. It turne...

Jeremy Grantham: How to invest like a stock market legend

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Jeremy Grantham: How to invest like a stock market legend

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.