The seven immutable laws of investing

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’.They are:Always insist on a margin of safetyThis time is never differentBe patient and wait for the fat pitchBe contrarianRisk is...

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’.

They are:

Let’s focus on two ‘Always insist on a margin of safety’ and ‘Be leery of leverage’.

‘Always insist on a margin of safety’

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