You don't need to believe I've found an inefficiency in the market. Fred Wilson outlined one in the original article, the market cap of the company was less th

You don't need to believe I've found an inefficiency in the market. Fred Wilson outlined one in the original article, the market cap of the company was less than the cash they had in the bank[1]. If you believe markets are always efficient[2] then I ask you to explain the tech crash in 2001. The NASDAQ lost 78% of its value over two and a half years and is still down ~60% from its peak. [1] Of course if you don't have control over the management and they're spending profligately enough to eliminate the advantage you wouldn't invest. Fred Wilson was the Chairman, however, so that was a non-issue. [2] They are mostly efficient, but at times human psychology causes them to be over or undervalued, ie during bubbles or after crashes.