Episode Summary

Jeremy Grantham's Big Calls: Emerging Markets, Venture Capital, and the Green Revolution

Long-term investment strategist and co-founder of GMO Jeremy Grantham has made a name for himself as a bubble spotter. In this interview with Mike Green of Logica Capital Advisors, Grantham argues that although we are again in a market bubble, it has an entirely different make up than prior bubbles and is almost devoid of the opportunity that these periods of misallocation historically provide. As a result, he sees opportunities as few and far between in public markets. With the exception of emerging markets and the greening of the economy, an endeavor that he believes is a societal necessity, he encourages investors to look towards venture. Together, Grantham and Green also debate China's position in Grantham's emerging market thesis and the green revolution, the pollution paradoxes of greening the economy, and the merits of societies and forms government that incentivize cooperation among people and risk taking in the form of early stage venture capital. Key Learnings: Emerging markets are the only place that Grantham sees clear opportunity in public markets. Using COVID response as a case study, Grantham worries about America’s potential to solve the problem of climate change. He also argues that if not for venture capital, American innovation would be non-existent.