"When the music stops, in terms of liquidity, things will be complicated, but as long as the music's playing, you've got to get up and dance. We're still dancing."
"What this article should have included is that investing has been perverted to closet gambling. The overwhelming type of information from the securities industry and the media is purposely designed to pander to humans' short-term desire for large unrealistic gains. Sell them what they want! Their approach actually works very well until it stops and then investors look around stunned that nobody warned them, as if they would have heeded the advice."As a professional in the business for about 30 years, I have found no-one better than Grantham in predicting future returns from the 10 asset classes he forecasts. This article struggles to give Grantham credit, couching his accomplishments with cheap disparagements about assets under management as if the amount of assets reflects investment performance or risk adjusted returns. Shameful reporting on that account!"Here's the deal. The media...cannot entertain you with the prospect of big short-term gains by talking about boring subjects like full market cycle returns because it requires you to be patient and disciplined, characteristics humans struggle with."Finally, there are precious few portfolio managers who have good full market cycle performance. Grantham has excelled in this area as facts have shown. I do thank the FT for the article on one of our industry's great strategists and students."
"Stocks and bonds are what he called evaporated property. People completely lose touch of the underlying assets. It's all paper – these esoteric devices. So it has become evaporated property squared. I call it evaporated property cubed."
"Extreme money is eviscerated reality – the monetary shadow of real things."
"With my two small investments, I thought only of what the properties would produce and cared not at all about their daily valuations. Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays."Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important. (When I hear TV commentators glibly opine on what the market will do next, I am reminded of Mickey Mantle's scathing comment: 'You don't know how easy this game is until you get into that broadcasting booth.')"My two purchases were made in 1986 and 1993. What the economy, interest rates, or the stock market might do in the years immediately following – 1987 and 1994 – was of no importance to me in determining the success of those investments. I can't remember what the headlines or pundits were saying at the time. Whatever the chatter, corn would keep growing in Nebraska."
"We visit companies across [the country] and one cannot overstate the changed mentality of management towards focusing on, and improving, their company's return on equity and shareholder returns; these two areas are now integral to most management's medium term plans. This change in mentality is a result of several factors, including younger management teams who realize that protecting the status quo and seeking harmony will undermine their company's long term competitiveness, and more pressure from domestic and foreign investors."We were pleased to recently add a couple of companies to the fund with very attractive metrics. These firms are in isolated locations and receive few visits from investors, yet are positioned to enjoy a strong earnings environment over the next three to five years."
"The best way of looking at the potential for improvement [in Japan] is the sheer amount of idle cash sitting on Japanese corporate balance sheets at a time when they are enjoying record profitability. This reflects the extent to which [Japanese] corporates had adjusted to deflation over a more than 20 year period."