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

Einhorn’s FOF Re-positions Portfolio, Makes New Seed Investment In Year Marked By “Speculative Exuberance”

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasIt has not just been rough year for David Einhorn's own fund. Einhorn's Greenlight Masters fund of hedge funds was down 3% net for the first half of 2020, matching the S&P 500's return for those six months. In his August letter to investors, which was reviewed by ValueWalk, the Greenlight Masters team noted that 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