Jeremy Grantham is a British businessman and investor who is known for his accurate predictions in the financial arena, particularly on the stock market. He is best known as the co-founder of the asset management firm GMO. He has offered warnings and advisement for decades with impressive precision and he is still chipping in his two cents on current affairs. To help you become more familiar with this expert and skilled analyst, here are 10 things that you probably didn't know about Jeremy Grantham.
1. He is one of Bloomberg's most influential people in business
Jeremy Grantham was listed on one of the most distinguished lists in the business world. He made the cut for inclusion in Bloomberg's 50 Most Influential People in the business world in 2011. This was a remarkable feat considering the fact that there are tens of thousands of successful influencers and analysts in the business sector.
2. He is a native of England
Jeremy was born on October 6, 1938, in Ware, Hertfordshire, England. He is presently 81 years old and he is still active in providing sage advisement about world business affairs as they pertain to the financial markets and predicted trends and outcomes. His parents named him Robert Jeremy Goltho Grantham, but he goes by the name Jeremy.
3. Grantham was educated in the United Kingdom and the United States
Jeremy Grantham was raised in Doncaster, England. He attended local schools in the area and upon completion of his high school he went on to attend college in his home country. He enrolled in the Economics program at the University of Sheffield and he earned his bachelor's degree at the institution. After this, he was accepted at Harvard Business School, in the United States. He completed his Master of Business Administration degree in 1966.
4. He co-founded GMO
GMO is an asset management firm that is headquartered in Boston, Massachusetts, USA. The acronym is short for Grantham, Mayo & van Otterloo. In addition to being a co-founder, Grantham also served s the chief investment strategist for the firm. The company passed a total asset under management mark of $118 billion in March of 2015, showing tremendous success in the investment industry, surpassing unicorn status by several times the standards set for this elite status.
5. Jeremy Grantham is known for his ability to predict bubbles
Grantham's expertise in the stock markets including commodities and bonds has earned him a great deal of respect among those who were amazed at the precision with which he has predicted the behaviors of various bubbles that have occurred throughout the decades. He is highly regarded as an investor who is skilled and knowledgable about market behaviors and the development of trends. His firm has been such a great success because of his ability to predict market direction for the best allocation of assets based on these estimations. It's been much like having an inside track with a brilliant analyst at the helm.
6. Grantham was spot on with predictions on the impacts of the Coronavirus
The recent Coronavirus pandemic has wreaked havoc and chaos in the financial markets. This has been an unprecedented event in our recent history, but Grantham was on top of it before the worst came to pass. He candidly warned investors that this is a time when you should be nervous about the stock market and your investment strategies. He ordered a slash at GMO in the company's free-allocation strategy that brought it down from 55% all the way down to 25% by the end of April for asset allocation. Grantham saw the handwriting on the wall just ahead of the major event that sent stocks plummeting with low confidence and a nervous skittishness being shown by investors.
7. Jeremy Grantham is an advocate for saving the world from climate change
At the age of 81 years, Jeremy Grantham has had a great deal of life experience. He was born during an era when the planet was in far less dire straights than it is at the present. He's seen the impacts of pollution and the shifts in the climate that have steadily increased through the decades he's been on this earth. Jeremy Grantham has pledged 98% of his personal wealth to an environmental foundation with the aim of saving society from climate change. He is of the opinion that as of right now, we're losing the battle.
8. He is a liberal republican
Jeremy Grantham is a self-described republican with liberal views. He was upset to learn that fellow billionaire, Mike Bloomberg made the decision not to run for the office of the President of the United States. He acknowledged in an interview that he is one of the last of his kind with regards to his political viewpoints. His hopes for Bloomberg were based on the likelihood of the former New York mayor's stand on environmentalism which is something that is dear to Grantham's heart.
9. Grantham would like to see a carbon tax
With respect to his environmentalist views, Grantham would like to see more venture capital go into investments in green technologies. It is his belief that a carbon tax would be the start of a good solution. He shared that he believes it would unlock billions of dollars for investment in these cleaner energy sources.
10. Jeremy Grantham foresees a short-term market impact from the pandemic
Grantham called the upcoming stock instability due to the Coronavirus pandemic, but he also holds some more positive views on the situation. He predicts that the crisis that has impacted the market and caused instability will be short term. Although the impact has been extreme it's not expected to cause "massive dilution" for investors who have shares in select companies, and that once we're over the initial bump, the economy will resume its normal functions.
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Written by Allen Lee
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