By Dan Ferris in DailyWealth:
It's official: Buying the cheapest assets you can find is where you make the biggest, safest, easiest money as an investor.
What made it "official" to me was a just-completed study by one of the greatest living investors. The investor is Jeremy Grantham. His firm Grantham, Mayo, Van Otterloo, manages over $100 billion.
Grantham recently published the results of a 10-year forecast he made for the period from December 31, 1999, to December 31, 2009. In 1999, Grantham predicted the rank and return for 11 different asset classes. The actual rankings wound up correlating 93% with Grantham's forecast.
The probability of equaling or besting such a performance is about one in 550,000.
How did he do it?
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