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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A history of financial speculation “James’ latest effort is a must read.

Other writers made the same points long ago, and I seriously doubt that anyone who ajmes buy a book with “value investing” in the title takes the idea seriously. Amazon Music Stream millions of songs. What other items do customers buy after viewing this item?

Value Invest

Opportunity or Value Trap? Pavel Gdetibil rated it liked it May 29, The only thing that goes up in monrier bear market is correlation. Over time and as the number of investment decisions made increases, the influence of investnig on your performance declines and the influence of skill takes over. Please try again later. Goodreads helps you keep track of books you want to read. A common distraction Montier strongly opposes is the capital asset pricing model CAPMwhich he calls “insidious”.


The first section spells out, in laborious detail, that the markets are not always rational.

Unfortunately this book was not as interesting as his later book Bull’s Eye Investing which provides a topical look at the current high level of the stock market and what strategies could work in the coming years – a more difficult topic in my opinion but better handled closer to his expertise as an economic forecaster I suspect.

Further to this point, Montier is more focused on reversion to the mean as the backbone of valuation, rather than prescient insight.

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So it’s not surprising that the successful value investors Montier surveyed had an average holding period of five years. Read more Read less. Any activity that doesn’t contribute to that goal is a distraction. The second section is on behavioral economics. You’ll sometimes find the same sentence, or even an entire paragraph repeated verbatim three, four, or even more times. 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.

8 investing tips from James Montier – InvestSMART

Or will they merely fail to meet investors’ high expectations? Montier pays lip service to this idea, but that isn’t really what he advocates in a lot of the book.


The book can be divided into two themes: The Little Book of Behavioral Investing: Books by James Montier. Amazon Inspire Digital Educational Resources. Do you recall that US house prices peaked inand using the Case-Shiller index the peak was at ? AmazonGlobal Ship Orders Internationally. Montier lets his interests in value and investor behavior show as he progresses through the book in a well-structured way.

This is just about the worst thing you could do. Open Preview See a Problem? Buy this book for yourself, and for anyone you know who cares about their capital! 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. Part 4 and 5 of the book are less interesting but have some interesting comments. Those figures can then be compared to jamew rates historical experience for similar businesses in similar industries.

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