Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Below we have GMO’s Jeremy Grantham’s widely read quarterly letter. A good portion of it is related to the conundrum of asset managers – that is, it is ok to be wrong as long as everyone else is wrong (even if that means you lose your clients a lot of money!), but it’s not ok to be wrong alone. Definitely an issue in our instant gratification society – even Buffet was doubted during the NASDAQ bubble of the late 90s, only to be prove ‘correct’ eventually.
The latter part of the letter brings in a “guest writer”, GMO fund manager Ben Inker, who discusses the firm’s views in relation to investing in a “quantitative easing” market, and their current outlook on valuations.
As always, hit fullscreen for the easier read.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
