Buffett rejects the efficient markets hypothesis, but still recommends low-cost index funds for most ordinary investors.

The efficient market hypothesis theory states that the market prices securities fairly and efficiently, and investors are unable to outperform the market consistently. Moreover, EMH theory proposes ...

Wall Street wants you to believe the market is unbeatable. That outperformance is just luck, a statistical fluke. But history ...

Stock picker Ken Farsalas at Oberweis Asset Management is proving that the best way to trounce index funds is to fill your portfolio up with little known, earnings-beating companies. Eugene Fama, ...

Economist Dick Thaler has a new FT opinion piece that says nice things about (and quotes extensively from) The Myth of the Rational Market. (Thanks, Dick!) In it, he makes the case that the efficient ...

Very few people make money being pessimistic in the long run, and most of the bearish narratives are just flat-out wrong. It's always risky making bets on a long-duration instrument in the short term, ...

One consequence of increasing wealth inequality is that rich people have growing piles of surplus money looking for a home.

The equity risk premium and other principles of modern finance must be deconstructed into their foundational components to be properly applied and understood. Read Full Article » ...

Every investor wants to know if markets can truly be beaten. This question has shaped the way people think about investing ...