Jeremy Grantham: an overview of the businessman’s professional life
British financier Jeremy Grantham is regarded as a respected expert, with articles published in well-known magazines such as Forbes and Business Week. His predictions of changes in the stock market are almost always justified. He’s also the co-founder of GMO, which manages $160 billion in assets. Despite his advanced age, Grantham is active in his profession and runs the company.
The financier was born in 1938 in Ware, England. Jeremy has a Bachelor of Economics from Sheffield University, before going on to Harvard, where he became a Master of Business Administration in 1966. There is little detailed data on how the young Grantham built his career. What is known is that he worked as an economist for the Shell oil company. And in the financial environment young man was noticed when in 1969 he and his partners opened a consulting firm Batterymarch Financial Management. After a while, Grantham took part in the foundation of fund investing in stock indexes. The idea of this type of investment was not a success at the time, and in the 1970s Jeremy became a founder of GMO.
Grantham’s greatest talent as a financier is his ability to make accurate stock market forecasts. Thanks to this, Grantham earned virtually his entire capital when the stock market was in crisis. For instance, in the 1980s, the economic bubble burst in Japan, and the businessman helped his clients minimize their losses and withdraw their funds from the collapsed market. He then took emergency measures to save clients’ assets during the dot-com crash of the 2000s and the 2008 financial crisis.
The main focus for Grantham now is carbon energy. He is confident that investing in them will soon cause a major collapse and losses. He is of the opinion that a bubble is now forming in the sector and its collapse will be quite painful for the market.
Jeremy’s predictions have helped companies avoid serious losses on more than one occasion. A prime example is the coronavirus pandemic in 2020, for which Grantham was prepared. He reviewed his clients’ asset investments in advance, ensuring their losses were minimal. The main principle that the financier follows is that markets always return to their averages. Focusing on this setting, GMO analyzes the values of the quotes for a certain period of time, and based on these results makes a forecast for the next 7 years. When the value of the stock of interest is below the average, the company begins to buy it.