Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert, then something has gone badly wrong with capitalism. If high profits do not attract competition, there is something wrong with the system and it is not functioning properly.
There is no single theory that is used in economics that considers the finite nature of resources. It's shocking. - Jeremy Grantham
There is no single theory that is used in economics that considers the finite nature of resources. It's shocking.
- Jeremy Grantham
The individual is far better-positioned to wait patiently for the right pitch while paying no regard to what others are doing, which is almost imposs… - Jeremy Grantham
The individual is far better-positioned to wait patiently for the right pitch while paying no regard to what others are doing, which is almost imposs…
You don't get rewarded for taking risk; you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because … - Jeremy Grantham
You don't get rewarded for taking risk; you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because …
Remember that history always repeats itself. Every great bubble in history has broken. There are no exceptions. - Jeremy Grantham
Remember that history always repeats itself. Every great bubble in history has broken. There are no exceptions.
Investment bubbles and high animal spirits do not materialize out of thin air. They need extremely favorable economic fundamentals together with free… - Jeremy Grantham
Investment bubbles and high animal spirits do not materialize out of thin air. They need extremely favorable economic fundamentals together with free…
Although value is a weak force in any single year, it becomes a monster over several years. Like gravity, it slowly wears down the opposition. - Jeremy Grantham
Although value is a weak force in any single year, it becomes a monster over several years. Like gravity, it slowly wears down the opposition.
I believe the only things that really matter in investing are the bubbles and the busts - Jeremy Grantham
I believe the only things that really matter in investing are the bubbles and the busts
I would say that financial markets are very inefficient, and capable of extremes of being completely dysfunctional. - Jeremy Grantham
I would say that financial markets are very inefficient, and capable of extremes of being completely dysfunctional.
Market timing, by the way, is a tag some buy-and-hold investors use to put down anything that involves using your brain. These are the same people wh… - Jeremy Grantham
Market timing, by the way, is a tag some buy-and-hold investors use to put down anything that involves using your brain. These are the same people wh…
Login to join the discussion
Login to join the discussion