Jeremy Grantham

Jeremy Grantham

Last Update: 08-12-2016

Number of Stocks: 563
Number of New Stocks: 87

Total Value: $24,372 Mil
Q/Q Turnover: 19%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Jeremy Grantham Watch

  • Airlines Among Efficient Profitable Companies

    Among companies trading on the New York Stock Exchange and the Nasdaq, airlines have high growth and value potential. Alaska Air Group Inc. (NYSE:ALK) and Allegiant Travel Co. (NASDAQ:ALGT) currently have low cash conversion cycles, which lead to effective management and increasing profit margins.


    Cash conversion cycle measures efficiency and management effectiveness

      


  • Recreational Vehicle Companies Have Soaring Returns

    Among the industries for U.S. companies, the auto industry contains several companies that have high returns on equity and high returns on assets. Two recreational vehicle companies, Polaris Industries Inc. (NYSE:PII) and Thor Industries Inc. (NYSE:THO), had historically increasing returns, suggesting that the recreational vehicle industry offers good value opportunities for investors.


    Five different return ratios

      


  • Medical Companies Offer Good Value Opportunities

    Due to the great financial crisis, most companies were undervalued based on their valuations. Based on backtesting results, the “Peter Lynch Growth with Lower Valuation” test portfolio took positions in Baxter International Inc. (NYSE:BAX) and Abbott Laboratories (NYSE:ABT), two medical companies that reached historically low price-earnings ratios. While these companies presented good value opportunities from 2007-2011, other medical companies provide better opportunities in 2016.


    Brief introduction of Peter Lynch

      


  • GMO's New 7-Year Forecast Highlights One Incredible Fact

    U.S. equities have performed incredibly well since the 2008 to 2009 financial crisis. Since those lows, the S&P 500 has gone on a tear, exploding nearly 260% in just seven years.


    According to GMO LLCa $120 billion asset manager co-lead by Jeremy Grantham those days are over.

      


  • The Reserve: The Dollar, the Renminbi, and Status of Reserve - GMO White Paper

    Part I - The Dollar Ascendant


    When I was in elementary school, my family made regular trips to my parents’ birthplace of India. The journey would normally take us from our home in Iowa, to London, to Bombay (now Mumbai), and finally to Hyderabad. Upon arrival, we children would clamor for the local currency, rupees. These rupees were the key to making the summer trip tolerable: rupees purchased quantities of lassi, ice cream, and Indian fruit sodas. During our layover in Bombay, my father allowed us the luxury of room service. After the server made the delivery, he waited for the customary gratuity, and I realized that I had not a rupee on me. I reached into my pocket, but only found a crumpled dollar. I gave it to him with trepidation, but was relieved when he gladly accepted it. At the time, it struck me as odd that the US dollar, a foreign currency, would be accepted by a server thousands of miles away from the US. Now, many years later, that incident serves to remind me of the power and convenience of a reserve currency.

      


  • 3 More Reasons Grantham Favors Commodity Stocks

    Earlier, we highlighted three reasons to own commodity stocks, not commodities themselves. The thesis stemmed from research done by Jeremy Grantham (Trades, Portfolio) and Lucas White of GMO LLC, an asset manager with more than $120 billion in assets.


    It is worth your time to listen to Grantham. He's credited with calling the 2008-2009 housing collapse and the following credit crisis. Previously, he started one of the world's first index funds in the early 1970s, avoided investing in Japanese equities and real estate in the 1980s and recommended not investing in technology stocks during the Internet bubble in the 1990s.

      


  • Jeremy Grantham Says Own Commodity Stocks, Not Commodities

    In recent years, it has become vogue to invest directly in commodities, especially with the advent of ETFs allowing quick, cheap and easy exposure. Given the performance gap between, say, gold miners and the price of gold, many investors have been satisfied with their decision.


    But, in a recent white paper, Lucas White and Jeremy Grantham (Trades, Portfolio) present a compelling case for investing in resource equities rather than the commodities themselves. Here is what they found.

      


  • Jeremy Grantham - An Investment Only a Mother Could Love: The Case for Natural Resource Equities

    Executive Summary




  • Jeremy Grantham Trims Amazon, Baidu, Wal-Mart

    Jeremy Grantham (Trades, Portfolio) is the Chairman of the Board of Grantham Mayo Van Otterloo, a Boston based asset management firm. The following are his largest trades of the second quarter.


    The guru almost closed his stake in Amazon Inc. (AMZN), reducing it by 97.56% with an impact of -2.76% on the portfolio.

      


  • Steve Mandel Buys Shire, Axes 6 Positions in 2nd Quarter

    Steve Mandel (Trades, Portfolio), founder of Lone Pine Capital, utilizes a long-short equity strategy to create long-term capital growth. During the second quarter, the fund manager bought Shire PLC (NASDAQ:SHPG), reduced three existing positions and eliminated three stakes.


    The Lone Pine Capital manager purchased 2,529,148 shares of Shire at an average price of $180.56 and sold all 10,591,296 shares of Baxalta Inc. (NYSE:BXLT) at an average price of $42.24. In the aggregate, Mandel increased his portfolio by 0.02% with these transactions.

      


  • Tom Gayner Buys Microsoft, Amazon

    Tom Gayner (Trades, Portfolio), executive vice president and chief investment officer of Markel Corp. (NYSE:MKL) and president of Markel Gayner Asset Management Inc., Markel's investment subsidiary since December 1990, bought shares in the following stocks in the second quarter.


    The investor acquired 522,000 shares in Liberty Media Corp. (LSXMK) with an impact of 0.42% on the portfolio.

      


  • Jim Simons' Top New Holdings

    During the second quarter, Jim Simons (Trades, Portfolio) of Renaissance Technologies LLC acquired three new holdings. He purchased Nike Inc. (NYSE:NKE), The Home Depot Inc. (NYSE:HD) and Salesforce.com Inc. (NYSE:CRM).


    Nike

      


  • Richard Perry Buys St. Jude

    During the second quarter, Richard Perry (Trades, Portfolio), co-founder of Perry Capital, acquired a new holding in St. Jude Medical Inc. (NYSE:STJ).


    Perry purchased 265,000 shares at an average price of $71.31 per share. The transaction had an impact of 1.44% on his portfolio and is among his top 10 holdings for the quarter.

      


  • John Hussman Buys Infosys, Southern

    John Hussman (Trades, Portfolio) is the president and principal shareholder of Hussman Strategic Advisors, the investment advisory firm that manages the Hussman Funds. During the second quarter he bought shares in the following stocks.


    The investor raised his stake in Infosys Ltd. ADR (INFY) by 7,042.86% with an impact of 1.34% on the portfolio.

      


  • Stocks With Low Price to Sales: Barclays, Loews Corp

    According to GuruFocus' All-in-One Screener, the following are the stocks with market caps above $5 billion that are trading with low price-sales ratios.


    Canon Inc ADR. (CAJ) is trading at about $28 per share with a P/S ratio of 1.00 and an estimated forward price-earnings of 16.07. The company has a market cap of $63.8 billion and over the last 10 years, the stock has dropped by 40%. During the last 52 weeks, the price has been as high as $32.64 and as low as $26.60.

      


  • Jeremy Grantham's GMO 2nd-Quarter Commentary: Immigration and Brexit

    Preface


    I set myself a task this quarter to give my views on why suddenly so many strange things are going on in the US and in the UK and what they might mean. We in the US can see the turmoil resulting from the Brexit vote, which seems to have been undertaken almost casually, without the normal planning for consequences. It has been likened to a dog that to its amazement catches the car – now what? The consequences for the remarkable experiment of the European Union are unknowable but potentially profound.

      


  • Ben Inker's GMO 2nd Quarter Letter: The Duration Connection

    Executive Summary


    Over the last six or seven years, most financial assets have done very well. The performance divide has not been between low-risk assets and high-risk assets or between liquid assets and illiquid assets, but between long-duration assets and short-duration assets. Long-duration assets such as stocks, bonds, real estate, and private equity have benefitted from a large fall in the discount rate associated with their cash flows, while short-duration assets have been hurt by the same fall. Investors tend to tilt their portfolios in favor of those assets that have done well, and today that pushes them to be increasing effective duration in their portfolios, just when the potential returns to those assets have dropped. What we believe would be most helpful to investors are short-duration risk assets, as they offer the potential of decent returns over time with less vulnerability to rising discount rates. These assets, generally lumped together under the “alternatives” title, are generally out of favor today given their disappointing performance since the financial crisis, but the characteristics that made them disappoint may well prove a blessing if discount rates start to rise.

      


  • Peter Lynch's Bargains

    According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with wide margins of safety and at least five gurus are shareholders.


    AerCap Holdings NV (AER) is trading at about $36 per share, the Peter Lynch value gives the stock a fair price of $81.2, giving investors a margin of safety of 56%.

      


  • Retail Companies Offer Strong Investment Opportunities

    Among companies trading on the Standard & Poor’s 500 index, several retail companies like Nike Inc. (NYSE:NKE) had strong Altman Z-scores throughout their histories. With above-average Z-scores and historically strong business operations, these companies offer hot opportunities for investors.


    A brief recap on Altman Z-scores

      


  • Gurus' Stocks Trading Below Peter Lynch's Fair Value

    According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with wide margins of safety and at least five gurus are shareholders.


    Lincoln National Corp. (LNC) is trading at about $39 per share, and the Peter Lynch fair value gives the stock a fair price of $62.37, giving investors a margin of safety of 37%.

      


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