The Making of a Permabear: The Perils of Long-Term Investing in a Short-Term World

From the renowned iconoclast investor comes a brilliant account of sixty years spent hunting for value and sidestepping bubbles in a changing financial world

When Jeremy Grantham entered the investment business in the 1960s, he brought the thrifty Quaker values and Yorkshire independence he had been raised with. While other money managers were focused on blue chip stocks, he studied stock market history and constructed by hand the first indices for small-cap and value stocks. Charting their ebb and flow, he could see clearly the powerful force that would become central to his investment philosophy: mean reversion, "the heartbreaking principle that good times always revert back to more boring, more ordinary times."

In the early 1970s Grantham was a pioneer of index investing. Soon after, he co-founded GMO and spent the firm's early earnings on a hard drive the size of an industrial washing machine, becoming the first firm to use a computer for investment analysis. This quantitative style went on to take over the industry. In the late 1990s Grantham acquired notoriety as a "permabear" for refusing to buy into the dotcom mania. Clients left in droves--one called him "dangerously persuasive and totally wrong"--but he was vindicated when the bubble burst in 2000. Yet while his wealth grew, so did his alarm at the disastrous consequences of short-term thinking not just for investors but for the very future of the planet, and he has directed nearly all his wealth to environmental protection.

Written with his former colleague, the bestselling financial historian Edward Chancellor, The Making of a Permabear is replete with investment insights and provides a compellingly candid and witty insider's tour of the booms and busts of the past half century.

Jeremy Grantham is widely regarded both as one of the world's greatest investors and a top environmental philanthropist. He is cofounder and long-term investment strategist of GMO, a Boston-based investment management firm with offices around the world, and founder of the Grantham Foundation for the Protection of the Environment. He is a member of the American Academy of Arts and Sciences and received the Carnegie Medal for Philanthropy in 2017 as well as the Harvard Business School's 2025 Alumni Achievement Award. He lives in Boston.

Edward Chancellor is an award-winning financial journalist and for several years worked with Jeremy Grantham at GMO. He is the author of The Price of Time: The Real Story of Interest, winner of the 2023 Hayek Book Prize, and Devil Take the Hindmost: A History of Financial Speculation, a New York Times Notable Book of the Year. He lives in Somerset.