Business Insider interviews Jim Grant
I ran across a very good, 30-minute, interview with Jim Grant, conducted by Henry Blodget of Business Insider. The video mostly covers Jim Grant's personal history but it does touch on some interesting topics.
One of the interesting views echoed by Jim Grant—I'm sure many classic value investors will completely disagree—is the notion that Graham & Dodd investing (what I call classic value investing) does not work under all environments. I am not a value investor and don't follow everything that is said but I haven't heard anyone prominent say that before. I have always heard Graham & Dodd proponents say that it always works (albeit it may be difficult if everything is overvalued).
Grant, apparently after suffering terribly in Japan throughout the 2000's, says that Graham & Dodd doesn't work in Japan. His view is that the corporate culture and the governance is so different—"Japanese do not have a market in corporate control"—that buying assets below net current asset value means almost nothing. He basically says that the lack of hostile takeover means that, for instance, cash could sit on the balance sheet and you can't do anything. (If you are interested in this issue, skip to 22:00 where he talks about the Japan experience.)
As in the past, when it comes to other issues, I think Jim Grant is mistaken if he thinks the gold standard is any superior to the present; or that it will save us from our own mistakes.
(Hat tip to The Big Picture for bringing this video to my attention.)
One of the interesting views echoed by Jim Grant—I'm sure many classic value investors will completely disagree—is the notion that Graham & Dodd investing (what I call classic value investing) does not work under all environments. I am not a value investor and don't follow everything that is said but I haven't heard anyone prominent say that before. I have always heard Graham & Dodd proponents say that it always works (albeit it may be difficult if everything is overvalued).
Grant, apparently after suffering terribly in Japan throughout the 2000's, says that Graham & Dodd doesn't work in Japan. His view is that the corporate culture and the governance is so different—"Japanese do not have a market in corporate control"—that buying assets below net current asset value means almost nothing. He basically says that the lack of hostile takeover means that, for instance, cash could sit on the balance sheet and you can't do anything. (If you are interested in this issue, skip to 22:00 where he talks about the Japan experience.)
As in the past, when it comes to other issues, I think Jim Grant is mistaken if he thinks the gold standard is any superior to the present; or that it will save us from our own mistakes.
(Hat tip to The Big Picture for bringing this video to my attention.)
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