The folly of efficient market theory - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

The folly of efficient market theory

Dec 27, 2013

Here is today's recommended reading list from Equitymaster...

Inflation 101
What is Inflation? The common answer is: 'rising prices is inflation'. However it is not so simple. As this brilliant article points out, Inflation is not an increase in the price level but the cause of it. Inflation itself is a very different thing. So what exactly is it? Read on to find out. ( Safehaven)

Troubled times for emerging markets
Over-interference of government in economies, increasing reliance on commodities and unfavorable demographic trends are the trouble areas brewing for emerging economies according to Goldman Sachs. And emerging markets are expected to underperform for another 5-10 years. To get more details, refer the link below that summarizes well the recent Goldman Sachs research on trends in emerging markets. (Zacks)

The three common characteristics of Buffett's best investments...
Under legendary investor Warren Buffett's brilliant stewardship, Berkshire Hathaway has snowballed into a gigantic US$ 290 bn company. This has been possible because of Mr Buffett's excellent capital allocation skills. This article discusses three common characteristics between some of Buffett's greatest investments... Read on to find out what those characteristics are... (Fool.com)

How to become wealthy
Becoming fabulously wealthy is a dream of many people. Yet very few know how to achieve it. This is because most people are confused about where to start. If the basics of wealth creation interests you, then this very helpful article is for you... (Beginnersinvest)

The folly of efficient market theory
Passive index investing is based largely on the premise that markets are largely efficient. It is extremely difficult to find underpriced stocks because markets price in all the future growth prospects. This fallacy has been proven to be wrong but many still believe it to be true. In this insightful article the author explains how he unlearned this folly. Read on to find out more... (Morningstar)

Disclaimer:
This article is for information purposes only. The link in this article will let the User leave www.equitymaster.com and proceed to the linked article. The User's use of each such site is subject to Terms of Use on www.equitymaster.com and other terms of use, if any, contained within each such site. Any data and charts if used, in the article have not been authenticated by Equitymaster and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views, if any in the linked article are not of Equitymaster. Equitymaster will not be responsible for any loss or liability incurred to any person as a consequence of his or any other person on his behalf taking any investment decisions based on this article. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "The folly of efficient market theory". Click here!

1 Responses to "The folly of efficient market theory"

Kirandeep Atwal

Dec 28, 2013

Warren Buffet is right in his argument. But, markets are inefficient in very long term. There are very few people who can remain invested for such a long period of time. Most of the fund managers get assessed on quarterly result. Therefore, they will lose job if they invest like Warren Buffet. An excellent example in India is real estate. Most of the people who made fortune from real estate had invested in it for more than ten years. If you are investing in real estate for less than 5 years then returns from it will converge to inflation.

Like 
  
Equitymaster requests your view! Post a comment on "The folly of efficient market theory". Click here!

More Views on News

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track (Views On News)

Nov 26, 2021

Before investing in value stocks, research the company and gain insight into why the market is discounting it.

How to Prepare for a Stockmarket Pandemic in 2022 podcast (Views On News)

Dec 6, 2021

The transition from a small correction to a market crash to a bear market may be without any warning.

SEBI Issues Operating Norms For Silver ETFs. Here is All You Should Know (Outside View)

Dec 6, 2021

SEBI has issued operating norms for Silver ETFs to ensure uniformity of the schemes.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Dec 6, 2021 03:25 PM

MARKET STATS