The Long View

Ben Inker: What Looks Cheap and Dear in Today’s Market

Dec 12, 2023

This week on The Long View, Ben Inker, head of asset allocation at GMO, discusses the impact of Charlie Munger on investing, the concentration in the US stock market, the role of fund flows in valuation, the outlook for value equities in Japan, investing in Chinese equities, and more.

59:01

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Episode guests

Ben Inker

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Episode notes

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Quick takeaways

Understanding how returns are generated and looking beyond just the returns of an asset is crucial in investing.

Investing in quality stocks offers stability, resilience, and long-term performance, providing distinct advantages over growth companies.

Deep dives

The Influence of Jeremy Grantham on Ben Inker's Investing Approach

Ben Inker discusses the significant impact that Jeremy Grantham, co-founder of GMO, had on his investing career. Grantham taught Inker valuable lessons about investing, including the importance of understanding how returns are generated and the need to look beyond just the returns of an asset. Inker credits Grantham for shaping his approach to investing and providing him with a strong foundation in the field.

Introduction

3min

The Impact of Charlie Munger and the Importance of Quality in Investing

24min

Concentration in the US stock market compared to the nifty 50 era and the growth of top companies

6min

The Role of Fund Flows and Index Investing in the Market

3min

The Outlook for Value Equities and Small Cap Value Stocks in Japan

11min

Investing in Chinese Equities

11min

Closing Segment and Disclosure

2min

Our guest this week on The Long View is Ben Inker. Ben is the head of asset allocation at GMO, a Boston-based investment manager famous for its asset-class forecasting. Ben joined GMO in 1992 after completing his bachelor’s in economics from Yale. He’s been an analyst, a portfolio manager, and a CIO, and is a partner and board member for the firm.

Background

Bio

GMO U.S. Quality ETF

GMO Benchmark-Free Allocation III

Reflecting on the Past Few Years

“GMA Questions Links Between Higher Interest Rates and Value Stocks,” by Eric Rasmussen, fa-mag.com, March 27, 2021.

“GMO’s Inker: Why Investors Shouldn’t Fear a Recession in 2022,” by Jeff Berman, thinkadvisor.com, June 30, 2022.

“Profiting From a Bubble in Growth Stocks,” webcast with Jeremy Grantham, Simon Harris, Ben Inker, and Catherine LeGraw, GMO.com, March 25, 2021.

“GMO: There’s Joy in Missing Out,” by Julie Segal, institutionalinvestor.com, Jan. 31, 2023.

Current Outlook

“Update on the Bursting Bubble in Growth Stocks,” webcast with Jeremy Grantham, Simon Harris, and Ben Inker, GMO.com, June 15, 2022.

“Beyond the Landing,” by Ben Inker and John Pease, GMO.com, 3Q 2023.