Legendary investor Jeremy Grantham called the pandemic crash — but says he traded it so poorly he 'might as well have done nothing'
Business Insider
February 14, 2026
AI-Generated Deep Dive Summary
Legendary investor Jeremy Grantham, co-founder of Grantham, Mayo & van Otterloo (GMO), has issued a series of warnings and reflections in his new memoir, *The Making of a Permabear: The Perils of Long-term Investing in a Short-term World*. In the book, Grantham raises concerns about an AI bubble, sparked by the release of ChatGPT in late 2022, which he describes as a "bubble within a bubble." He warns that this new phenomenon has no clear historical precedent and could lead to significant market volatility, potentially deflating the existing stock market bubble. Grantham also predicts a recession due to past interest-rate hikes and excessive speculation during and after the pandemic.
Grantham reflects on his own investing career, acknowledging that while he correctly anticipated the COVID-19 pandemic's impact on the stock market in early 2020, his trading strategy was insufficiently bold or clever. He contrasts his approach with Bill Ackman's more aggressive and profitable use of credit-default swaps (CDS) during the same period. Grantham admits that he struggles with implementation, even when his research and judgment are strong. This self-criticism is a recurring theme in his memoir, where he also laments missed opportunities to maximize returns during market lows, such as in March 2009.
In his book, Grantham expresses disillusionment with investing, calling it a "trivial activity" that lacks socially redeeming features. He urges young people to pursue practical and scientific careers—such as engineering, farming, or serious research—instead of finance, as these fields will be crucial for addressing global challenges like climate change. Grantham emphasizes the importance of developing skills that can tackle existential risks, warning that the world faces "desperately difficult years" ahead. He highlights his foundation's focus on innovative solutions, such as geothermal energy and sustainable packaging, as examples of work with meaningful impact.
Overall, Grantham's memoir offers a unique perspective on market dynamics, investing pitfalls, and the broader societal implications of financial decision-making. His warnings about AI bubbles, pandemic-related speculation, and the long-term sustainability of stock markets are particularly relevant
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Originally published on Business Insider on 2/14/2026