Jeremy Grantham

Jeremy Grantham

Last Update: 02-13-2017

Number of Stocks: 499
Number of New Stocks: 50

Total Value: $18,552 Mil
Q/Q Turnover: 10%

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

Jeremy Grantham Watch

  • GMO: The Deep Causes of Secular Stagnation and the Rise of Populism

    In a companion paper, “Six Impossible Things Before Breakfast,” we present evidence that asset markets are generally priced for “secular stagnation,” and argue that this requires a number of extreme assumptions on the part of investors. However, we didn’t really explore the root causes and consequences of secular stagnation in that paper. We remedy that with this paper, which is a deep dive into the murky world of secular stagnation, its sources, and its impact.

      


  • Will YouTube TV Kill Big Cable?

    YouTube, which has entertained the world with kittens and helped fix innumerable clogged drains, has announced it will launch YouTube TV, a low-cost cable TV service. In other words fewer channels than conventional cable at a lower price. YouTube TV plans to offer some 40 channels for just $35 a month and add a number of features, including a virtual DVR (digital video recorder).


    It’s the latest spinoff from the Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL) empire, which wisely purchased YouTube some years ago and has since built it into a powerhouse in its own right. By the end of 2016, fans were watching YouTube 1 billion hours a day.

      


  • GMO Emerging Thoughts: Emerging Markets Can Trump US Policy Rhetoric

    Key points

      


  • A Potentially Intriguing Blend of Capital Gains and Income

    At the end of February, the Daily Buy Sell Advisor reported that OpenText Corp. (NASDAQ:OTEX) had just reached a milestone: it had increased its dividend for a fifth consecutive year. And that’s just one of many positive signals emanating from this growing IT company.


    At the same time, OpenText is currently on the Undervalued Predictable screener list, meaning its price is below the discounted cash flow (DCF) valuation at GuruFocus, and it has a history of consistently growing its earnings.

      


  • GMO Insights - Emerging Markets: Value Trumps Headlines

    Let’s imagine Plutus, the Greek god of wealth, was feeling so benevolent at the beginning of 2016 that he let all emerging market investors in the land know the following events would occur with certainty in the coming year: 1) growth concerns and threats of currency devaluation in China would shake the emerging and developed markets alike; 2) drastic declines in oil and commodities prices would follow; 3) a faction of the Turkish Armed Forces would attempt a coup d’état in Turkey; 4) Brazil would suffer a shattering political scandal (leading to President Rousseff’s impeachment), and a debilitating outbreak of Zika; 5) Donald J. Trump, after campaigning on a highly protectionist platform, would be elected president of the United States; and, finally, 6) similar to what happened in Brazil, the Korean president would be impeached. Most investors, after falling to their knees in thanks for this prescience, would have moved quickly to take all their capital out of emerging market investments and then waited for the ensuing carnage. Would that have been the right call? Absolutely not. While emerging equities (and debt, for that matter) displayed volatility during the year, due in large part to those headlines coming true, they delivered solid returns of 11.2%, considerably outperforming global equities (Exhibit 1). Emerging market value stocks did even better, generating gains of nearly 15% in 2016. As is often the case, especially with emerging markets, an asset priced for horrific news can do just fine, even when faced with bad news. Oh, by the way, Brazil was the best performing stock market in the world in 2016. Arjun Divecha, the Chairman of the GMO Board of Directors and head of our Emerging Markets Equity team, is fond of saying that in the emerging markets, “You make more money when things go from truly awful to merely bad, than when they go from good to great.”


    The blue line in Exhibit 2 indicates that things are not all good or even great in the emerging markets. Return on equity (ROE) for the asset class has been declining for years relative to the developed world. After years of superlative performance during the height of the commodities super cycle, ROEs for the emerging world offer 13% less than their developed counterparts.

      


  • Jeremy Grantham Trims Consumer Defensive and Technology Empire

    Jeremy Grantham (Trades, Portfolio), chairman of Grantham, Mayo, Van Otterloo & Co., is regarded as a knowledgeable investor in various stock, bond and commodity markets. During fourth-quarter 2016, Grantham trimmed positions in Proctor & Gamble Co. (NYSE:PG), Cisco Systems Inc. (NASDAQ:CSCO), Microsoft Corp. (NASDAQ:MSFT) and Qualcomm Inc. (NASDAQ:QCOM).


    Proctor & Gamble

      


  • 6 Low P/E Stocks Gurus Are Buying

    Here are six stocks gurus are buying that are trading with low price-earnings (P/E) ratios. Some of them are great investments; others need a double check, according to the DCF calculator.


    Infosys Ltd. ADR (INFY) with a market cap of $31.86 billion is trading with a P/E ratio of 14.84 and a price-sales (P/S) ratio of 3.14. According to the DCF calculator the stock has a fair value of $21.5 while trading at about $13.94. The price has dropped by 22% during the last 12 months and is now 31.90% below its 52-week high and 1.46% above its 52-week low.

      


  • Jeremy Grantham Buys Penn Virginia

    Jeremy Grantham (Trades, Portfolio), chairman of the board at Grantham Mayo Van Otterloo, established a position in Penn Virginia Corp. (NASDAQ:PVAC) on Dec. 31, 2016.


    Grantham, Richard Mayo and Eyk Van Otterloo founded GMO in 1977 in Boston. The firm depends on in-depth fundamental analysis and innovative quantitative methods to identify long-term investment opportunities that will achieve the best risk-adjusted returns.

      


  • 3 Stocks That Have Gotten Cheaper in Market's All-Time High

    The Dow, Nasdaq and the S&P 500 stock index soared to record highs this month, fueled by a confluence of Friday’s job report that showed an increase in U.S. wages, a spike in energy prices, a Fed meeting that allayed worry it would raise interest rates and investor optimism that President Donald Trump will improve the economy.


    Markets this trading week completed a two-month run since the U.S. election on Nov. 8 that has included a string of new records. In the past month, Nasdaq rose 3.4%, reaching a record peak Thursday; the S&P 500 gained 2.59% to a new intraday high Friday; and the Dow climbed 3.8%, coming within one point of 20,000 for the first time Friday.

      


  • Scott Black's Best-Performing Assets of 2016

    Scott Black (Trades, Portfolio) is the chairman, president, chief investment officer and chief compliance officer at Delphi Management Inc. The following are the best performers of his investments.


    Thor Industries Inc. (THO) with a market cap of $5.26 billion gained 80.4% in 2016. The guru's holding represents 1.49% of his total assets.

      


  • Mariko Gordon Adds 5 New Holdings to Portfolio

    Daruma Capital Management’s Mariko Gordon (Trades, Portfolio) acquired five new holdings in the third quarter.


    Gordon founded Daruma in 1995 in New York and currently serves as CEO. Gordon runs a concentrated portfolio of small to mid-cap stocks because she believes a concentrated portfolio is crucial to truly active management. She believes the best time to acquire a stock is when it offers good value and the factor that will propel the price higher can be identified.

      


  • 9 Companies Grantham Continues to Boost

    Jeremy Grantham (Trades, Portfolio) is the chairman of Grantham Mayo Van Otterloo, a Boston-based asset management firm. In both the second and third quarters the guru bought shares in the following stocks:


    Noble Corp. PLC (NE)

      


  • Abbott Laboratories CEO Buys Stock in Company

    Miles White (Insider Trades), CEO and chairman of Abbott Laboratories (ABT), purchased 369,950 shares in the company in five transations on Nov. 10. The per share price ranged from $40.45 to $40.67.


    Abbott Laboratories is a health care company that provides generic branded pharmaceuticals. The company has a market cap of $57.62 billion.

      


  • Hellish Choices: What’s an Asset Owner to Do? - Ben Inker Letter

    Executive Summary

      


  • Smith & Wesson to Change Name

    In an effort to be known as more than just a gunmaker, Smith & Wesson (SWHC) announced Monday it will be changing its name to American Outdoor Brands Corp.


    “We believe the name 'American Outdoor Brands Corp.' will better reflect our family of brands, our broad range of product offerings and our plan to continue building upon our portfolio of strong American brands,” CEO James Debney said.

      


  • Jeremy Grantham's 3rd Quarter Commentary: Not With a Bang but a Whimper (and other stuff)

    Preamble


    Rather like a parrot I have been repeating for 10 quarters now my belief that we would not have a traditional bubble burst in the US equity market until we had reached at least 2300 on the S&P, the threshold level of major bubbles in the past, and at least until we had reached the election. Well, we are close on both counts now. My passionate hope was that I would then, perhaps 6 months after the election, recommend a major sidestep of the coming deluge that would conveniently have arrived 6 to 12 months later, allowing us then, after a 50% decline, to leap back into cheap equity markets enthusiastically, more enthusiastically, that is, than we did last time in 2009. Thus we would save many of our clients tons of money as we had (eventually) in the 2000 bust, at least for those clients who stayed with us for the ride, and in 2007. I consider myself a bubble historian and one who is eager to see one form and break: I have often said that they are the only really important events in investing.

      


  • Slow & Steady for Check Point Software

    Growth at Check Point Software Technologies Ltd. (CHPK) has slowed. But this resident of the Undervalued Predictable and Buffett-Munger screeners at GuruFocus has potential for investors who want a tech company that can consistently deliver increasing earnings.


    With current concerns about internet security and hacking, it’s probably a good time to look at companies that help us protect our computers, servers and infrastructure. Check Point has been doing that for more than twenty years.

      


  • 6 Stocks With Growing Yield and Strong Returns

    Using the GuruFocus All-In-One Screener, I want to highlight stocks that have a 5-year growing dividend yield with strong profitability and a long-term track of solid returns and growing asset value.


    Church & Dwight Co. Inc.(NYSE:CHD) has a dividend yield that has grown by 31.80% over the last five years. The yield is now 1.49% with a payout ratio of 40%. The company has a 10-year asset growth rate of 8%, supported by a current return on assets (ROA) of 10.66% that, during the last 10 years, has had a median value of 9.19%.

      


  • Warning Signs Identify Value Declining Companies

    Among U.S. companies, Leucadia National (Trades, Portfolio) Corp. (NYSE:LUK) has declining profit margins and a weakened financial outlook. As the beef-processing company shows warning signs of potential bankruptcy, several gurus look elsewhere for growth and value.


    Brief discussion about the warning signs

      


  • Airline Stocks Offer High Growth and Value

    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

      


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