GMO: No Silver Bullets in Investing

The latest from GMO’s James Montier,  No Silver Bullets in Investing (just old snake oil in new bottles) debunks some widely held beliefs about investing and inflation protection.  His findings will surprise you but his conclusion probably won’t:

“The one thing that unites everything I’ve been writing about in this paper is the golden rule of investing: no asset (or strategy) is so good that you should invest irrespective of the price paid. If when buying a house the mantra is “location, location, location,” when thinking about any investment (be it an asset or a strategy), the equivalent refrain should be “valuation, valuation, valuation.” We would argue that one of the myths perpetuated by our industry is that there are lots of ways to generate good long-run real returns, but we believe there is really only one: buying cheap assets.”

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