Jeremy Grantham publishes a quarterly investment outlook that is widely read and circulated by investment professionals. In his most recent letter. He outlines 10 investment lessons that are a great example of his thinking. After pondering the list and sifting through the useful and the very useful, my favorites are:
#5 – Recognize your advantages over the professionals
and
#6 – Try to contain natural optimism
Notice that none of Grantham’s points seek to improve your analytical skills but instead focus on corralling errant human behavior.
