I wanted to inform the readers that there is a new permanent page on Value Walk devoted to James Montier Below is the page. You can also find it under Current Value Investors. I will soon make a page for academics (ones worth their grain of salt), where I will put Montier’s page under.
Although, James Montier does not have his own fund, he has valuable information. Despite finds psychology boring, James Montier’s The Little Book of Behavioral Investing is one of the most valuable books I have read. At the Value Investing Congress in 2010, copies of the book were handed out to all partcipants.
The credit for this page goes to my colleague and friend, Tim. I modified a few things but the content was put together almost entirely by Tim. He gave me permission to post on Value Walk.
Tim du Toit is editor and founder of Eurosharelab. On his website he reveals what more than 20 years of equity investment have taught him – sometimes at considerable cost. To discover how you can avoid costly mistakes and enjoy greater profits, sign up for his free newsletter “Investing that makes sense” at www.eurosharelab.com.
I met James Montier at a value investment seminar in Italy in 2007 where he presented. We had long discussions later the day and into the evening on value investing and investment strategy.
James was kind enough to put me on his distribution list and I really looked forward to each of his articles as they always taught me something.
Unfortunately James decreased his writings since taking a position with the asset manager GMO in 2010.
I decided to put this resource page together so you can also benefit from James’s investment wisdom.
James Montier’s Amazon Page shows all the books he has authored as well as the following short biography:
James Montier is a member of GMO’s asset allocation team.
Prior to that, he was the co-Head of Global Strategy at Société Générale and has been the top-rated strategist in the annual Thomson Extel survey for most of the last decade.
Montier is the author of four market-leading books:
- The Little Book of Behavioral Investing: How not to be your own worst enemy (Little Book, Big Profits)
- Behavioural Finance: Insights into Irrational Minds and Markets
- Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance
He is a Visiting Fellow at the University of Durham and a Fellow of the Royal Society of Arts.
On July 7, 2010 blogger Adib Motiwala posted this good summary Lessons from “The Little Book of Behavioral Investing” by James Montier
On July 7th James started up his blog Bahavioural Investing again which has been dormant since November 2007. Be sure to add it to your RSS reader.
In this May 2010 article called I Want to Break Free, or, Strategic Asset Allocation does not equal Static Asset AllocationJames Montier talks about in the beginning investing was a simpler and happier.
The essence of investment was to seek out value; to buy what was cheap with a margin of safety. Investors could move up and down the capital structure (from bonds to equities) as they saw fit. If nothing fit the criteria for investing, then cash was the default option.
But that changed with the rise of modern portfolio theory and, not coincidentally, the rise of “professional investment managers” and consultants.
In March 2010 Miguel Barbosa in his Simolean Sense blog interviewed James Montier about his book Value Investing: Tools & Techniques For Intelligent Investing.
In the second part of the interview Miguel talks to James about his other book The Little Book of Behavioral Investing – How Not To Be Your Own Worst Enemy.
In this February 2010 article, the first since joining GMO, James Montier asks Was It All Just A Bad Dream? Or, Ten Lessons Not Learnt from the financial crisis.
In November 2009 article titled Only White Swans on the Road to Revulsion James Montier makes the argument that that the housing bubble and the crisis following its collapse was not an unforeseen event but rather the result of over optimism and the illusion of control, two classic human behavioural mistakes.
This article is the text of a speech called Six Impossible Things Before Breakfast, or how EMH has damaged our industrywhich James Montier delivered at the at the August 2009 CFA UK conference on “What ever happened to EMH”. Dedicated to Peter Bernstein (EMH = Efficient Market Hypothesis)
The financial times in this 24 June 2009 article EMH, AMH: Edwards and Montier ride again motions James Montier leaving Societe Generale to join US investment manager Grantham Mayo Van Otterloo & Co, just after he and Albert Edwards won the Thomson Extel European analysts award in May 2009 as the top global strategy team.
In this 2 June 2009 research paper Forever blowing bubbles: moral hazard and melt-up James Montier explored the bubble phenomenon and what happens in the future after a bubble pops. He explores the possibility that all the government rescue packages initiated in 2008 have the possibility to again inflate a substantial bubble.
In this 24 June 2009 Financial Times article called Insight: Efficient markets theory is dead. James Montier explains why the efficient markets theory is dead but still lives because of academic inertia.
In June 2009 James Montier’s published this list of his Favorite Investment Books as well as a Summer reading list of more recent titles.
In May 2009 shortly after the market started its recovery from its March 9 2009 lows James Montier in this article titledSucker’s rally or the birth of a bull? asks if this is a suckers rally and if so what investors could do to protect themselves. He also gives a few short ideas from his shorting screen.
In this 27 January 2009 article Clear and present danger: the trinity of risk, James Montier writes about the three primary and interrelated sources of investment risk; Valuation risk, business or earnings risk and balance sheet or financial risk.
In this excellent review of James Montier’s book – Behavioral Investing: A Practitioner’s Guide to Applying Behavioral Finance, Bruce Grantier summarises the main points of the book with emphasis on mistakes and biases followed by a discussion of number of behavioral phenomena.
In the article The psychology of bear markets published in December 2009, during the brunt of the bear market James Montierwrites about that the mental barriers to effective decision-making in bear markets are as many and varied as those that plague rationality during bull markets but that they more pronounced as fear and shock limits logical analysis.
In this 25 Nov 2008 article called The road to revulsion and the creation of value, James Montier argues that the road to revulsion – sharply declining prices – ends in an investment nirvana with unambiguously cheap assets.
In this 25 November 2008 Bloomberg article Montier Has ‘Never Been More Bullish’ on Stocks James Montier makes the cast that stocks are “distinctly cheap” because they trade at 15.4 times the