Jeremy Grantham, GMO – Short-Term Pessimist, Long-Term Optimist | #397

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 9 March 2022

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today’s guest is Jeremy Grantham, the Long-Term Investment Strategist and co-founder of GMO. It’s been about a year since we first spoke with Jeremy and given his knowledge of financial history, there are few people who are better to hear from about what’s happening in the world today than Jeremy. We start by touching on his investment in QuantumScape, which he saw grow to $500 million on paper and later decline by 80%. Then Jeremy shares what he thinks the societal implications will be from a huge potential write down of perceived wealth in the US if this superbubble bursts. He also touches on some of his biggest concerns at the moment: the conflict between Russia and Ukraine, labor and materials shortages, poor demographics, and rising inflation. While Jeremy is frequently referred to as a bear, one of my big takeaways is his optimism and excitement to solve some of the longer-term problems faced around the globe. If you want to hear our conversation with Jeremy from February 2021, click here. ----- Follow Meb on Twitter, LinkedIn and YouTube For detailed show notes, click here To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com ----- Today’s episode is sponsored by MUD\WTR. MUD\WTR is a coffee alternative that supports your morning ritual without all the anxiety and jitters of coffee. Get your starter kit and free frother at mudwtr.com/meb and use code FABER for 15% off. ----- (2:52) - Welcome back to our guest, Jeremy Grantham; Episode #286: Jeremy Grantham, GMO (3:32) - What’s transpired in the past 12 months since he first appeared on the show (6:14) - Update on his investment in QuantumScape (12:57) - The impact of the Russian invasion of Ukraine on wheat prices (19:32) - Would we be better off with robots instead of the Fed? (22:00) - Societal implications of a possible write down in perceived wealth (25:35) - Not being able to rely on bond diversification (Ben Inker 4Q21 Letter) (26:54) - Jeremy’s thoughts on commodities and emerging market value today (29:53) - Triumph of the Optimists; Credit Suisse Annual Reports (33:02) - Why Jeremy is as a perma-bear but largely optimistic; Reinvesting When Terrified (34:59) - What Jeremy is thinking about in the VC world (38:02) - Jeremy’s take on nuclear power (45:38) - The cost of capital and inflationary pressures in the coming decade Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to the Mebb favor show, where the focus is on helping you grow and preserve your wealth.
0:11.0	Join us as we discuss the craft of investing and
0:13.5	uncover new and profitable ideas all to help you grow wealthier and wiser. Better
0:17.5	investing starts here.
0:19.5	Meff Faber is the co-founder and chief investment officer at Cambria Investment Management.
0:23.4	Did it industry regulations, he will now discuss any of Cambria's funds on this podcast.
0:27.2	All opinions expressed by podcast participants are solely their own opinions and do not reflect the
0:30.8	opinion of Cambria Investment Management or its affiliates.
0:33.4	For more information, visit Cambria Investments.com.
0:35.6	What's up, friends? We've got a huge episode for you.
0:43.0	Today we welcome back,
0:45.0	GMO's Jeremy Grantham.
0:47.0	It's been about a year since we first spoke with Jeremy
0:49.0	and given his knowledge of financial history,
0:51.0	there are few people who are better to hear from what's
0:53.6	happening today than Jeremy. We start by touching on his investment in
0:57.5	Quantum Scape, which he saw to grow to over 500 million bucks before later
1:01.7	declining and liquidating, then Jeremy shares what he thinks the societal implications will be from a huge potential write down of perceived wealth in the US if this super bubble bursts. Feels like it's already started. the shortages, poor demographics, and rising inflation.
1:23.0	While Jeremy is frequently referred to as a permabare,
1:26.0	one of my big takeaways is his optimism and excitement
1:29.0	to solve some of the longer-term problems faced around the globe.
1:32.0	If you want to hear our conversation with Jeremy from February 2021, check the link in the show notes.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Idea Farm, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Idea Farm and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.