IFB08: Debunking Flawed Efficient Market Hypothesis Assumptions
. The efficient market hypothesis is one of the hottest debated topics in the investing world. In today’s session, we are going to discuss some of the many ways this theory is flawed. We will talk about many of the efficient market hypothesis assumpti...
Summary
. The efficient market hypothesis is one of the hottest debated topics in the investing world. In today’s session, we are going to discuss some of the many ways this theory is flawed. We will talk about many of the efficient market hypothesis assumptions and how they may or many not have gotten it wrong. Pricing is one of the main hot buttons in this theory and we will show why the efficient market hypothesis assumptions are incorrect. * The efficient market hypothesis states the market can’t be beat * All stock prices have all relevant information included in them * Only way to beat the market is with passive investing * Warren Buffet debunks this with his famous speech * Value investing has beaten the market over the last thirty years * The efficient market hypothesis is based on people being rational, which we all know we are not. * The market can be beaten and there are lots of tools to help. * If you don’t want to be an individual investor than index funds are the way to go. Andrew: Well, two weeks ago we took out our weapons and fired them into the financial services industry and probably pissed off a few people. Today we are going direct it against some other group. Probably make some people mad. Basically talking about the academic types in their ivory tower. There is a theory called the efficient market hypothesis, really based off a lot of the professors at the University of Chicago. If you pursue an education in relation to investing or the stock market, economics you will get exposed to the efficient market hypothesis. It is something that there has been a lot of studies on. Ph.D. thesis was done on it. It is also a very hotly debated theory among investors, particularly value investors. You have the value investor side. Guys who have made billions like Warren Buffett, Seth Klarman, Peter Lynch, Joel Greenblatt, Monish Pabrai, and on, and on. It’s kind of like them through their performance that has proved the efficient market hypothesis hasn’t held true for them. So, there’s that camp. And there’s the other camp that says the other investors should not try to beat the market because the markets are efficient. So that’s something we kind of want to address and give our own takes on it to see. Our audience is a lot of beginners and if there are academic studies saying we shouldn’t try to beat the market. Or is it something we should try to follow, or is it something we should look further into and see if there is a way to mitigate that. That’s what I hope to do with this episode. Dave: Why don’t you tell us a little bit about the efficient market hypothesis. Where it originated and who started it, and what your thoughts are on it. Andrew: It’s been around for a while. Most recently is has been popularized by Jack Bogle and author Burton Malkiel, who wrote a Random Walk Down Wall Street. Where he brought his own inputs into it and gave some conclusions about why the markets are really efficient. So the whole premise behind it is that there is this idea that every stock available in the stock market is fairly priced based on the information that is available currently. There is all this financial data, these stocks trade on how they release earnings, what balance sheets look like. So, the whole premise of the efficient market hypothesis is that all this information is freely available. You’ve got millions, perhaps billions who are sifting through this. Industry professionals, fund managers, individual investors like you and I are all dis...
First published
03/22/2017
Genres
Duration
40 minutes
Parent Podcast
The Investing for Beginners Podcast - Your Path to Financial Freedom
View PodcastSimilar Episodes
-
Ep. 15 - Finding your Path - The Roadmap to Financial Freedom
11/20/2023
Join us in Episode 15 of the Investing Well Podcast, where we chart the course to achieving true financial and lifestyle freedom. Recognizing that the journey to financial independence varies for each individual, this episode is dedicated to defining a clear and adaptable path to reach your financial goals. In episode 15: Finding your Path - The Roadmap to Financial Freedom, we challenge the common misconception that financial freedom is solely about amassing wealth. We delve into the critical components that constitute true financial independence: the equity cycle, the importance of being debt-free, and the foundations of financial stability. These elements are essential in not only attaining but also maintaining financial freedom, ensuring that it is not a fleeting state but a sustainable lifestyle. We understand that everyone starts from a different point on the financial spectrum. That's why we provide insights and tools to help you identify your current financial status and the specific steps you need to take next. Whether you're just beginning your journey or you're well on your way, this episode offers valuable guidance tailored to your unique situation. Throughout the episode, we share inspiring stories, practical advice, and actionable strategies to navigate the path to financial and lifestyle freedom. By the end of our discussion, you'll have a clearer understanding of where you stand and what you need to do to move closer to your dreams of financial independence. Tune in to Episode 15 of the Investing Well Podcast for an empowering guide to achieving the financial freedom you've always envisioned. Let's embark on this journey together, one step at a time, towards a future of financial security and personal fulfillment. Want more? Lets be friends : Join our Facebook community @ Investing Well Podcast Community Are you ready to start investing well in your life? if so grab our free mile marker workbook on our page and start letting the slight edge work in your favor today! you can find it at www.investingwellpodcast.com/milemarker
Clean -
The Financial Path to Freedom
01/25/2022
Join myself, & Millen Livis for this week's She Rose Revolutionaries Podcast interview called "The Financial Path to Freedom".Millen Livis is an International Holistic Financial Independence mentor, best-selling author, investor, and entrepreneur.She does that by mentoring clients in 4 areas of life that influence financial success the most – mindset, money management, money investing, and spirituality) - using the MILLENaire Method (her time-tested holistic system for creating Financial Independence).Here is what we covered on this episode of She Rose Revolutionaries:-Millen’s personal journey from leaving the comfort of her Wall Street job, and her marriage to pursue a life in alignment with her deeper values.- Her dark night of the soul, where she was pushing up against many obstacles including financial struggles and what happened that allowed her to turn it all around.- Her definition of financial freedom and how it supports us in creating a life on our terms.- Why women often don’t feel financial freedom is within reach for them, and where they can find themselves self-sabotaging- The importance of making your money work for you as you grow your wealth.- Simple ways to get started on the pathway to financial freedom.- Why having a vision, and establishing your financial freedom number is so important when it comes to setting yourself up for success.- Why we have to condition ourselves towards success ( I personally LOVE how she touches on this).- The importance of mentorship .- Cultivating a wealth and financial freedom skill-set.And so much more...Millen is a wealth of wisdom!Here's a free gift of “Never Worry About Money Again” complimentary consultation (Value $797): https://SpeakWithMillen.comOr Follow her work on Facebook: https://www.facebook.com/DareToChangeLifeAnd as always come join in on the She Rose Revolutionaries private community for weekly discussion: https://www.facebook.com/groups/sheroserevolutionariesFREE: The Radiant Morning Power Hour (Come home to the power of presence, and recalibration to your most powerful, radiant self): https://www.akashicwomenschool.com/free-giftReach out to tara@tarapreston.com to learn more about ways to work with her through your life reinvention.
Clean -
Simple Steps to Financial Freedom For Beginners (Do This!)
12/20/2023
On this episode of The Table with Anthony ONeal, we unpack best strategies to bring order to your financial life proving why it's never too late to pursue financial freedom! This episode is a roadmap to reclaim control, make informed decisions, and build a secure financial future. Take note as AO share actionable insights that transcend age, helping you unlock the doors to financial stability. It's not just advice; it's a transformative guide to reshaping your financial narrative. Tune in and equip yourself with the tools to embark on a journey toward lasting financial well-being. Don't miss out!🇬🇭 Join Me in Ghana! : https://www.anthonyoneal.com/africaMentioned On Today's Show:🤝 Ethos Life Insurance: http://anthonyoneal.com/lifeinsurance💲Wealth Builder Tool: https://www.anthonyoneal.com/wealthbuilder💰 Wealth Calculator: https://www.anthonyoneal.com/wealth-calculator📗: The Ultimate Guide To Debt Payoff: https://www.anthonyoneal.com/free-tool/debt-payoffWatch the full episodes here:▶️ Smart Money Goals: https://youtu.be/4rCwWiLfu04?si=6lQrR_XWZF99rVQ1▶️ 5 Wealth Principles: https://youtu.be/1hFc9xEnj0E?si=OulVJTTGH6AGfR_6▶️ Become a Millionaire: https://youtu.be/WOzYuo7GdEg?si=4eSOKggdhxHLKOmR▶️ Break Free From Middle Class: https://youtu.be/EobmdvJrI_g?si=-nASkYsS2Sbv94TcCheckout My Network Partners:🤝 Bethel Tech: https://www.anthonyoneal.com/bethel🤝 Better Help: https://www.betterhelp.com/ao🤝 Chime: https://www.chime.com/ttao🤝 Course Careers: https://www.anthonyoneal.com/bootcampcc🤝 Ethos Life Insurance: http://anthonyoneal.com/lifeinsuranceTools Created With YOU In Mind:💲Wealth Builder Tool: https://www.anthonyoneal.com/wealthbuilder💰 Wealth Calculator: https://www.anthonyoneal.com/wealth-calculator💸 Debt Calculator: https://www.anthonyoneal.com/debt-calculator📗: The Ultimate Guide To Debt Payoff: https://www.anthonyoneal.com/free-tool/debt-payoff📒 Make Money Online: https://www.anthonyoneal.com/free-tool/how-to-make-money-online👩🏾❤️👨🏾 Singles Playbook Quiz: https://take.singlesplaybookquiz.com/❓ Guide To Asking Hard Questions: https://get.thequestionsguide.com/o/⛪️ My Devotional on The Bible App: https://rb.gy/89fh0🎵 Intro: "The Table - Evan Ford, https://www.instagram.com/itsevanford/?hl=en https://music.apple.com/us/artist/evan-ford/999576125"GET IN TOUCH🌍 My website - https://www.AnthonyONeal.com🌍 Advertise With Me - partnership@anthonyoneal.comConnect with Me!Instagram: @anthonyonealFacebook: @anthonyonealWho I AM:Hey, fam! I’m Anthony and I’m here to help you discover your authentic self and achieve spiritual, financial, and mental freedom. I know what it’s like to be in debt and homeless - I’ve been there. But with the grace of God, I was able to turn my life around and I’m now helping others to do the same.Disclaimer: Some of these links are affiliate links, which means I may get a commission if you purchase. However, none of the fees of these resources have been increased to compensate me. In fact, many of these have given me special discounts that I get to extend to you! 😉Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy
Clean -
Andrew Sather - The Investing for Beginners Podcast (September 2023)
10/26/2023
Andrew Sather and David Ahern are co-hosts of “The Investing for Beginners Podcast - Your Path to Financial Freedom”. At FinCon23 in New Orleans, we had the good fortune of meeting Andrew and sitting down with him to talk shop. Andrew talks about the podcast he co-hosts, his current largest stock position ($CCI), and brief thoughts on the state of homebuilders.Andrew’s links:Podcast (Apple): https://podcasts.apple.com/us/podcast/investing-for-beginners-podcast-your-path-to-financial/id1210741497Podcast (Spotify): https://open.spotify.com/show/3sIN6k0aT6cCWP2AJRvHEKMonthly Newsletter: https://valuespotlight.com/landing/plans/320778Twitter: https://twitter.com/ValueTrapBlogWebite: https://einvestingforbeginners.com/---------------------------Time in the Market is presented to you by Shareholder Vote Exchange, a platform that helps investors make money from their shareholder voting rights.Shareholder votes are inherently valuable, yet nearly 80% of retail investors do not vote in any given corporate meeting. Shareholder Vote Exchange allows investors to generate additional returns by monetizing their shareholder votes. Selling shareholder voting rights in a stock does not affect one’s economic ownership. Learn more about Shareholder Vote Exchange at http://svegroup.com/Time in the Market: Investors Profiles and Journeys is a podcast for conversations with preeminent voices in the investment community about their investment approach, methodology, and journey. We specifically profile independent writers, podcasters, and youtubers — people who have built their following and reputation brick by brick. If you manage your own assets, and especially if you like to pick your own stocks, this podcast is for you.Spotify: https://open.spotify.com/show/3CXYeyvBdVIJ3wzx6HPczsApple: https://podcasts.apple.com/us/podcast/time-in-the-market-investor-profiles-and-journeys/id1708364573RSS: https://feeds.zencastr.com/f/jFcfF32P.rss
Clean
Similar Podcasts
-
Theology For You
08/15/2020
Theology For You
Theology For You
Clean -
Your Car Insiders
08/15/2020
Dana Southern & Gary Green
Your Car Insiders was created to be your personal advocate through your car buying experience. We will find the best price for your chosen vehicle, the highest price possible for your trade if applicable and sit with you through the finance process. Our service is unique in that we are with you throughout every phase of your purchase from beginning to end, from the initial “Hello” handshake to the final “Congratulations and enjoy your new car!” handshake. You deserve to understand, be comfortable with and be in control of every step of your vehicle purchase.We sincerely care about people and want to use our decades of experience and knowledge to help you make the best decision for you and your family. Let us be Your Car Insiders!Your Car Insider Hosts:Dana Southern602-317-8565Dana@YourCarInsiders.comGary GreenManaging Partner 602-525-1370Gary@YourCarInsiders.comhttps://omny.fm/shows/your-car-in
Clean -
Live Phenomenal Podcast
08/11/2020
Aisha Taylor
The Live Phenomenal Podcast is a podcast designed to show women how to Live Phenomenally by finding freedom from the financial yo-yos of overspending, under saving, and defining themselves by their closets. Too many women are trapped by the use of shopping to manufacture happiness, define their worth, recapture missed childhood opportunities, or impress other people, resulting in a mountain of debt and a loss of their identities. Our financial empowerment movement liberates women from the need to seek validation from others and material possessions and living life based on other people’s opinions, allowing them to graduate from paycheck-to-paycheck and inauthentic living into a life of financial freedom, purpose, and abundance. In this podcast, FNPhenomenal Founder, Aisha Taylor, interviews a FNPhenomenal Women who shares her story about overcoming fear to living a phenomenal life defined on her own terms and the freedom and abundance that came with that decision. If you are struggl
Clean -
Kolob to Calvary's podcast
08/11/2020
Tracy Tennant
Kolob to Calvary Podcast speaks to the heart and soul of those leaving Mormonism for Biblically-based faith. It also serves as a digital portal to empower like-minded believers seeking to better understand the Word of God and to prepare and equip them to be victorious on the spiritual battlefield.
Clean -
Ear to Asia
08/12/2020
Asia Institute, The University of Melbourne
On Ear to Asia, we talk with Asia experts to unpack the issues behind news headlines in a region that is rapidly changing the world. Ear to Asia is produced by Asia Institute, the Asia research specialists at the University of Melbourne, Australia. Subscribe to us on Apple Podcasts, Spotify, or wherever you get your podcasts.
Clean -
CFM Sermons
08/12/2020
Chester Freedom Ministries
Insight and Teaching on Biblical values and Kingdom concepts from different speakers at Chester Freedom Ministries, a church of Chester SC
Clean -
STAR WARS The Vintage Rebellion Podcast
08/11/2020
The Star Wars Vintage Rebellion Podcast - SWTVR - Podcast Team
The Star Wars Vintage Rebellion Podcast is brought to you by five vintage Star Wars Toy collectors. The team discuss vintage star wars collectibles, recent threads and stories from across social media and forums, the current vintage market, oddball items, as well as covering stories that have been rocking the vintage collecting community. There are also interviews with all types of collector as well as an events section where you can discover Star Wars events in your area. All this plus much much more, so download this podcast now!
Clean -
History for Kids
08/11/2020
Fun Kids
This is THE podcast for kids that want to learn all about history.From the Victorian era to the Romans, each "History for Kids" series dives into the lives of people living back in those days and get's kids learning all about what happened in the past!
Clean -
RJ’s Old Podcast
08/11/2020
Robert Jimenez
Sermons, Teachings, Musings by Robert JimenezOn The Path Podcast
Clean -
Dying To Live
08/15/2020
Dan Stotridge
Each episode Dan Stotridge the creator of Dying to Live discusses what it means to quit living your life to die, and how to start "Dying to Live".
Clean -
Podcast for WINNERS
08/11/2020
New Birth Winners Church
At New Birth Winners Church we are raising up a Family of FAITH that is a lighthouse, reflecting and illuminating The Glory of GOD. Building People - Building Dreams
Clean -
It's Your Hour
08/11/2020
Santa Victorio
Buddha was the best marketer in history. He said, "Don't believe anything I tell you. This is just what has worked for me. You can decide what works for you."
Clean
Discussion (0)
No comments yet
Be the first to share your thoughts about this episode!