James Montier, GMO. James is a member of GMO’s Asset Allocation team. Prior to joining GMO in , he was co-head of Global Strategy at Société Générale. James Montier’s book Value Investing is essential reading for value investors. With markets falling due to fears over China’s economy – the. “”As with his weekly column, James Montier’s Value Investing is a must read for all students of the financial markets. In short order, Montier shreds the ‘efficient.

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Widely regarded as a “perma-bear” by most market observers, Montier makes the case for being bullish last year despite widespread concerns of deflation driven by leverage and credit contraction. Well written-‘s book invessting us all to remain objective and continue to revisit our assumptions. It’s easy to think about how much money you can make but you also need to consider how much you can lose and the respective probabilities of each the ‘expected value’, in mathematical jargon.

Don’t just take action for action’s sake, particularly after losses. Simply put, the best, most comprehensive book on value investing I’ve ever read. Then you can start reading Kindle books on your smartphone, tablet, or computer – no Investiny device required. He argues that value investing is the only approach that puts risk management at the heart of portfolio construction.

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Value Investing: Tools and Techniques for Intelligent Investment by James Montier

Please try again later. Montier cites a study by Jeremy Investinh a great investor and colleague of his at GMO demonstrating that low beta stocks have outperformed high beta for decades, exactly counter to the premise of CAPM. Product details File Size: AmazonGlobal Ship Orders Internationally. So it’s not surprising that the successful value investors Montier surveyed had an average holding period of five years.


The seductive elegance of classical finance theory is powerful, yet value investing requires that we reject both the precepts of modern portfolio theory MPT and pretty much all of its tools and techniques.

Require a margin of safety.

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Most of these you will find better versions of in stuff like Howard Marks book ‘The most important thing mohtier Get the illuminated version with comments, its worth it. He rails against those who put too much faith in mathematical models based on past performance, then spends a lot of time discussing mathematical models based on past performance.

Value investing often involves going against the crowd, and hence involves social pain. Jun 17, Rob Kol rated it it was amazing.

If a stock is kicked out of an index or cancels its dividend, many professional investors will be forced to sell because they’re no longer allowed to own such stocks. Or, how they invest hopefully successfully on behalf of their clients. What other items do customers buy after viewing this item?

Bruce Greenwald, who wrote the Foreward, views this as an advantage. Montier’s work uses empirical evidence to support value investing principles. Nov 18, Shauntelle James rated it really liked it. Amazon Advertising Find, attract, and engage customers. Ed Yau rated it it was amazing Jun 02, The book is a collection of short pieces written by Montier in between and organized in 6 parts with some added comments.


In short order, Montier shreds the ‘efficient market hypothesis’, elucidates the pertinence of behavioral finance, and explains the crucial difference between investment process and investment outcomes.

For example, he spills quite a bit of ink telling the reader not to forecast. When profit warnings occur in our companies we find ourselves making excuses for the company. The Education of a Value Investor: Alexa Actionable Analytics for the Web. Oh, and there are precious few of the “Tools and Techniques” referred to in the subtitle.

Investors shouldn’t let fear and shock or past mistakes overcome rational thinking during market declines. Goodreads helps you keep track of books you want to read. Or will they merely fail to meet investors’ high expectations?

This book or rather, anthology of articles published by the author for the SG Group was a helpful blend of concrete evidence and advice for value investing as well as a guide of behavioral finance. There’s a problem loading this menu right now.

James Montier | Value Invest

In this book James shares his tried and tested techniques and provides the latest and most cutting edge tools you will need to deploy the value approach successfully. This makes it a bit less fluent and fresh than it could have been. So value investors are the financial equivalent of masochists”.