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GMO is a global investment management firm committed to providing sophisticated clients with superior asset management solutions and services. We offer a broad range of investment products, including equity and fixed income strategies across global develo...
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GMO LLC - Asset Allocation
Mr. Montier is a member of GMOâ€™s Asset Allocation team.
Prior to joining GMO in 2009, he was co-head of Global Strategy at Société Générale.
Mr. Montier is the author of several books including â€œBehavioural Investing: A Practitionerâ€™s Guide to Applying Behavioural Finance; Value Investing: Tools and Techniques for Intelligent Investmentâ€; and â€œThe Little Book of Behavioural Investingâ€.
Mr. Montier is a visiting fellow at the University of Durham and a fellow of the Royal Society of Arts.
He holds a B.A. in Economics from Portsmouth University and an M.Sc. in Economics from Warwick University.
But don't take my word for ...
But don't take my word for it as I found an interesting research paper that proves it works by James Montier, currently a member of the asset allocation team at GMO.
(Be sure to read to the end of the article where I show you how you can find the exact same investments James
used in his
The paper James
wrote is called Going global: value investing without boundaries and was published on 16 September 2008 when James
was still working for the French bank Societe Generale
Does global value investing work?
wrote the paper after he
was asked if he
has ever seen any research that proves that value investing works at the global level.
With the paper he
wanted to prove his
idea that an investor should be allowed to invest anywhere in the world where the most attractive investment opportunities can be found.
used a combination of five ratios to find undervalued investments Price to earnings, Price to book, Price to Cash flow, Price to sales and EBIT to EV.
Each of these ratios was ranked across the universe.
All developed markets evidence (Europe, US, Japan) James
found a similar pattern when he
extended the analysis to all the developed markets.
combined the emerging and developed markets into a single universe, he
found that value continued to work.
also found you must be patient, referring to Benjamin Graham who said:
also looked at what would have happened if you ran a concentrated portfolio, and only bought the most undervalued 30 companies.
To find undervalued companies James
used a combination of five ratios:
Going global: Value investing without boundaries, James Montier
, 16 September 2008
You can read more of James Montier's
work here: James Montier resource page
This measure avoids all the debate ...
This measure avoids all the debate about the value of write-downs, or whether the 2008 slump has understated profits and so on. (Hat-tip to GMO strategist James Montier for bringing Hussman's measure to my attention.) By this measure, too, U.S. stocks are wildly above historic averages.
Stock Market Valuations :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website
My brother Jim has been trading the markets for over thirty years.
Yesterday, we got involved in a conversation about the markets and the stock market in particular.
He always does a good amount of research to support his own trading decisions and since sharing observations is one of the reasons I started this blog, I thought we should at least be aware of these points.
Since today is the beginning of the earnings season for the first quarter, I thought it would be helpful to look at this piece from our old friend James Montier, head of equity research at Societe Generale based in London.
It seems that analysts are behind the curve when it comes to predicting future earnings.
shows us why and then goes on to demonstrate that even the meager earnings reductions that are projected are not priced into the market as many bullish commentators suggest.
Societe Generale analyst ...
Societe Generale analyst James Montier, a well-known bear, reckons value is growing on many stock markets.
Looking at such measures as dividend yield to corporate debt yield, he
finds that more than 10 percent of European, Japanese and British large cap stocks are a good deal.