Jeremy Grantham: “Keep telling yourself… you’re a long-term investor”
Jeremy Grantham has seen this crash coming for quite some time. Nevertheless, he is not selling everything and waiting out the market in Kruggerrands and cash. has kept a good long-term perspective about investing that bears repeating here.
Keep telling yourself every night that you’re a long-term investor and don’t look at daily stock prices. And it’s not too late to shift some of your money to high-quality blue chips. Emerging markets are probably no longer too expensive either. If you had 80% of your stockholdings in blue chips and 20% in emerging markets, you’d have a pretty reasonable portfolio to ride out the bad times.
–Jeremy Grantham, CNN Money
The crux of his comments are that good long-term investors do not just passively accept what the market dishes out. They actively manage their investments for long-term performance. One need not panic and sell everything. A better strategy would be to keep enough cash to cherry pick those investments that cheap in order to profit over the long-term.