When legendary value investor Jeremy Grantham turned 80, he made two resolutions: “to be prepared to write a cheque up to the limits of your ability”, and to “say what you think you should say to everybody”…
In this week’s show, Grantham shares his views on climate change, why he calls it the “Race of Our Lives,” and how he is investing to combat it. Here is a direct video link.
DP note: Grantham’s foundation and the ESG fund he describes are mandated to be fully invested with 30 year plus time horizons. Grantham describes new business ventures and technologies in this segment but also warns repeatedly that most assets are presently suffering from bubble pricing with greater downside than upside prospects from present levels. Few individuals have the luxury of decades where they can wait to make back capital losses and not require income or withdrawals in the interim. It’s important to remember that even world-changing technology and companies can be capital destructive over relevant time frames when bought near cycle peaks. For individuals, it is pragmatic to define sectors and percentage targets for allocation while waiting for repricing cycles to bring investment-grade entry points before committing capital.
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