Efficient Market Hypothesis

  • 04 Jan
    Is BBBY a bargain, or just cheap?

    Is BBBY a bargain, or just cheap?

    Warren Buffett is justifiably considered as one of the most successful investors of all time. The methods he employs to identify long-term investment opportunities have been thoroughly documented, by himself and others, and copied by value-oriented investors for decades. The annual reports he writes for Berkshire Hathaway are considered required reading in many investor quarters for the insights they give about his investing approach and its use under current market conditions, and market media outlets pay close attention to any opinions he renders about the economy or the market in general. More →

  • 13 Oct
    How To Spot The Big Trends Of The Future

    How To Spot The Big Trends Of The Future

    • In the short term, the market is heavily influenced by new information and noise.
    • In the long term, there are clear trends that can give you an edge to beat the market.
    • We’ll discuss a few trends that are clear but that will take time to develop.

    Introduction

    Some argue that the market is efficient and prices always reflect available information. The Efficient Market Hypothesis (EMH) was developed by Chicago School of Economics Professor Eugene Fama who was also awarded a Nobel prize for his findings in 2013. Implications of the EMH are that it is impossible to beat the market consistently on a risk-adjusted basis since market prices only react to new information or changes in discount rates. More →