Quote:
Originally Posted by moncton golden flames
read 'the intelligent investor' by benjamin graham.
it's not rocket science, it just doesn't follow 'efficient market theory' which most financial investment people follow.
good businesses do go on sale from time to time because the market is emotional and sometimes irrational and does not always price stocks appropriately.
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I agree and I'm a huge proponent of that strategy and have read that book a number of times. That said, it's hardly an edge. There are millions of people investing that way, and that erodes the return. I also note that for the past number of years value underperformed growth (the difference is a little debatable in my opinion). The tide could be turning now, particularly in the small cap space, but we'll see what happens going forward.
And as far as EMH, I don't think "most financial investment people" follow it. I think it's increasingly discredited and most people see inefficiency in a number of spaces in the markets.