the great bubbles are associated with great investment ideas that get overdone. It has to be

serious, and ideally it has to be obviously serious. Railroads are the best example, followed by

the internet. If you see that railroads are going to change the world, then of course you want

to invest. It was precisely their obviousness and their importance. Internet, most people

could see that it was pretty serious, that it would eventually change the world. Amazon went

up six times, something like that in 2000. Even though it was a successful idea, it went down

92%. Check it. It went down 92% in the bust. And then it rose again to inherit the earth. That isn't in a way exceptional. That's what you should expect. So here we are with Nvidia looking like Amazon Square, the money dwarfing any KAPX program in history. Everyone being clear in their mind that this is the

biggest thing they've ever had in their lives, and they're right. It is. That's why the

investment program is almost certain to be overdone.

I'm Ted Seidies, and this is Capital Allocators.

My guest on today's show is Jeremy Grantham, the co-founder of GMO,

a $100 billion dollar Boston-based asset management firm he co-founded in 1977. Over six decades in markets,

Jeremy has been one of the most respected and outspoken voices on value, market bubbles,

and long-term investing. He recently published The Making of a Permabair with Edward Chancellor,

an account of his career and investment lessons learned along the way. Our conversation begins with Jeremy's early lessons in frugality

growing up in wartime, Yorkshire, and his interest in numbers and investing. We trace his

career through the founding of Battery March and GMO, the golden period of value, the painful

lessons of the dot-com bubble, and the challenges since. We cover Jeremy's framework for identifying

and navigating market bubbles, career risk, and the current AI investment boom, and close with his

essential philanthropic work to change the trajectory of the environment,

alongside the investment strategy he deploys in his foundation.

Before we get going, after a long winter, we're starting to see green shoots in the changing of the season.

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