James Montier on The Seven Immutable Laws of Investing


gmo behavioral financeIn a previous article by James Montier, he emphasized the importance of investors sticking true to sensible guidelines for investing. However, Montier did not state what these principals were. In this piece, Montier describes seven rules of investing, which he calls “Immutable Laws of Investing.”

They are as follows:

1. Always insist on a margin of safety

This Tiger grand-cub was flat during Q2 but is ready for the return of volatility

Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More

2. This time is never different

3. Be patient and wait for the fat pitch

4. Be contrarian

5. Risk is the permanent loss of capital, never a number

6. Be leery of leverage

7. Never invest in something you don’t understand

Below Montier goes into detail regarding each of these seven rules:

James Montier: Immutable Laws of Investing

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