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The Making of a Permabear: The Perils of Long-term Investing in a Short-term World
From the legendary investor renowned for his ability to spot bubbles comes a brilliant account of a storied career as well as a vivid history of the stock market over the last sixty years
Raised in a Yorkshire coal-mining town, Jeremy Grantham once won seven games of Monopoly in a single evening—he figured out the most efficient properties on the board and went all in. So begins the story of an iconoclastic investment career launched into the stratosphere by a few simple buy cheap, watch for bubbles, and stick to your guns when you know you’re right.
Deep curiosity about the history of markets kept Grantham one step ahead. He created one of the first index funds in the 1970s, pioneered quantitative investment in the 1980s, and embraced emerging markets before other firms saw their potential. Grantham became famous when he accurately predicted and sidestepped a series of bubbles, but he learned by painful experience why so few others “It is terrible business to blow the whistle on a major bull market.” His firm skyrocketed from $250 million to a peak of $155 billion in assets under management. But as his wealth grew, so did his concerns about the deficiencies of capitalism and the unfolding climate crisis. He decided—at the top of his game—to donate nearly all his wealth to environmental protection.
With wit that’s as cutting against himself as his critics, Grantham reveals how hunting for bargains requires understanding the inefficiencies of the market and the human behavior that drives it. When resisting the bull market of the late 1990s, Grantham lost clients in droves before his bearish call was vindicated. “The best ideas eventually come out on top,” he says, “but sadly there's no guarantee you won't go out of business waiting.” That you might lose your job for being right is at the root of the short-term thinking that dominates the investment world. Such thinking also has disastrous consequences for the planet and mankind's long-term future. Ultimately, Grantham offers a deeply human, often heretical, and quietly profound lens on investing today.
Raised in a Yorkshire coal-mining town, Jeremy Grantham once won seven games of Monopoly in a single evening—he figured out the most efficient properties on the board and went all in. So begins the story of an iconoclastic investment career launched into the stratosphere by a few simple buy cheap, watch for bubbles, and stick to your guns when you know you’re right.
Deep curiosity about the history of markets kept Grantham one step ahead. He created one of the first index funds in the 1970s, pioneered quantitative investment in the 1980s, and embraced emerging markets before other firms saw their potential. Grantham became famous when he accurately predicted and sidestepped a series of bubbles, but he learned by painful experience why so few others “It is terrible business to blow the whistle on a major bull market.” His firm skyrocketed from $250 million to a peak of $155 billion in assets under management. But as his wealth grew, so did his concerns about the deficiencies of capitalism and the unfolding climate crisis. He decided—at the top of his game—to donate nearly all his wealth to environmental protection.
With wit that’s as cutting against himself as his critics, Grantham reveals how hunting for bargains requires understanding the inefficiencies of the market and the human behavior that drives it. When resisting the bull market of the late 1990s, Grantham lost clients in droves before his bearish call was vindicated. “The best ideas eventually come out on top,” he says, “but sadly there's no guarantee you won't go out of business waiting.” That you might lose your job for being right is at the root of the short-term thinking that dominates the investment world. Such thinking also has disastrous consequences for the planet and mankind's long-term future. Ultimately, Grantham offers a deeply human, often heretical, and quietly profound lens on investing today.
- GenresFinanceNonfiction
400 pages, Hardcover
Published January 13, 2026
49 people are currently reading
246 people want to read
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Displaying 1 - 4 of 4 reviews
January 31, 2026
Grantham is a stock market investor, philanthropist, and advocate for doing something about global warming. His arguments for limiting economic growth and for fighting global warming are cogent, and may carry weight with audiences that listen to billionaires who understand business.
There are some good reminders for value investors in here about not going along with the bewildered herd. It was interesting how none of the pension funds and such that fired him during bubbles went back to him after the bubbles burst. This is a combination of the "déformation professionelle" and career risk of money managers; for them, it's better to be wrong with the crowd and lose their customers' money than to be right all alone. People are often irrational, and the market is very obviously inefficient at times, even though the conventional wisdom on Wall Street and among famous economists is the Efficient Market Hypothesis. Grantham is not really a "permabear." He's a value investor who cries wolf when he thinks things are overvalued. He's been right (albeit early) multiple times.
He seems to have honestly enjoyed the puzzle-solving aspects of investing, being an early developer of things like index funds, quant investing, etc. However, he leaves a clear impression that it is very sad and wasteful to have so many of our best and brightest go to work on Wall Street in a zero-sum industry that produces nothing but has negative externalities for the economy and the environment.
There are some good reminders for value investors in here about not going along with the bewildered herd. It was interesting how none of the pension funds and such that fired him during bubbles went back to him after the bubbles burst. This is a combination of the "déformation professionelle" and career risk of money managers; for them, it's better to be wrong with the crowd and lose their customers' money than to be right all alone. People are often irrational, and the market is very obviously inefficient at times, even though the conventional wisdom on Wall Street and among famous economists is the Efficient Market Hypothesis. Grantham is not really a "permabear." He's a value investor who cries wolf when he thinks things are overvalued. He's been right (albeit early) multiple times.
He seems to have honestly enjoyed the puzzle-solving aspects of investing, being an early developer of things like index funds, quant investing, etc. However, he leaves a clear impression that it is very sad and wasteful to have so many of our best and brightest go to work on Wall Street in a zero-sum industry that produces nothing but has negative externalities for the economy and the environment.
January 23, 2026
"4 stars" for being a very insightful book describing a lot of history of the investment industry in the last 60 years. "5 stars" for serious long term investors interested in gaining insights. He recounts the ups and downs in his career and how he became highly successful despite thinking like a contrarian and going against traditional investment industry professionals. Has invaluable insights on market bubbles for investors, traders and novices alike in the stock market, of particular interest in the current environment!!
Also has some very good points on preservation of the environment and on climate change as well. I do intend to find out more about his charitable Foundation [https://www.granthamfoundation.org/ ] and what they are doing.
Highly recommend the audio version of this book as it has been narrated by the author himself and it is almost like he is talking to you and recounting his experience and thoughts!!
Also has some very good points on preservation of the environment and on climate change as well. I do intend to find out more about his charitable Foundation [https://www.granthamfoundation.org/ ] and what they are doing.
Highly recommend the audio version of this book as it has been narrated by the author himself and it is almost like he is talking to you and recounting his experience and thoughts!!
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February 3, 2026The making of a Permabear — Jeremy Grantham’s guide to booms, busts and popping market bubbles - https://www.ft.com/content/51e3c51b-d... via @FT
January 29, 2026
It is fun to read, if you are interested in investing. Unlike the book title, he is not permabear. He is just too rational.
If you have thought about investing, this book has so much wisdoms to agree and I did. That's why I enjoyed a lot.
If you have thought about investing, this book has so much wisdoms to agree and I did. That's why I enjoyed a lot.
Displaying 1 - 4 of 4 reviews