CHAPTER 7
Conventional Views on Sources of Market Inefficiencies
One goal of this book is to help investors choose a research emphasis that conforms to the source of market opportunities. We want to make sure that if we are spending time on research and security selection, we are focused on what’s important. A starting place in our research is accepting that when we engage in active management, when we research stocks under the guise that market beating portfolios can be constructed as a result of our research, we are first and foremost acknowledging that there are inefficiencies present in the market. If one does not accept that markets are inefficient, then one shouldn’t be spending time researching stocks or paying an active management fee. ...
