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I think beating the market was way easier in earlier times because the markets were less efficient. These days everyone have data and watch metrics.
by kmonsen 10y ago
I think beating the market was way easier in earlier times because the markets were less efficient. These days everyone have data and watch metrics.
- valuearb 10y agoMetrics are useless without philosophical and psychological commitment to the process. Many mediocre value investors can do valuations all day, understand moats, and then allow tons of biases to cloud their thinking and panic at the worst times. Then there's the guys who do valuations, then look at the charts to pick entry/exit point s, as if they can predict price action. With so many people doing it wrong, is there any reason to doubt the market is still inefficient? Buffett has never used computers. He reads financial reports. He doesn't want to know the market price until he's estimated a valuation, so he doesn't bias his decision. He's not staring at the tape or CNN so he doesn't get wound up to make knee jerk decisions. He sits around and reads and learns.