James Montier—who works alongside Jeremy Grantham at GMO—is my favourite investing author. He writes with a verve and clarity that’s missing from most in the industry. In simple, easy to understand language he debunks many theories finance professionals hold dear (such as CAPM). He’s written a number of books including the Value Investing: Tools and Techniques for Intelligent Investment (which I reviewed here) and Behavioural Investing among others.
Here I’ll focus on his recently published paper: ‘Seven Immutable Laws of Investing’.
Let’s focus on two ‘Always insist on a margin of safety’ and ‘Be leery of leverage’.
‘Always insist on a margin of safety’