Canonical · Macro & Investing · Memo

Reinvesting When Terrified

Jeremy Grantham · 2009

"In a crash the real danger is not buying too early but freezing entirely; the cure is a reinvestment plan decided in advance."

The idea

In March 2009, with markets in free fall, Jeremy Grantham warned that the danger wasn't buying too early — it was “terminal paralysis.” Investors sitting on cash would keep waiting for the bottom and miss the recovery entirely. In a panic, he argued, the failure to act costs far more than acting imperfectly.

Why it works

The takeaway — recall it first

The Superinvestors of Graham-and-Doddsville

"The concentrated success of value investors from a shared intellectual 'village' refutes efficient markets."

Warren Buffett · EssayContinue→