the.com/efficient market
the theory that beating the market is basically gambling with extra math.
means a market where prices already reflect all available information, so nobody can consistently outperform it without luck or insider knowledge.
from formalized by economist eugene fama in the 1960s-70s, building on earlier random-walk theories of stock prices dating back to louis bachelier in 1900.
three formsweak, semi-strong, strong efficiency, each stricter
nobel prizefama won 2013, partly for this theory
index funds bornefficient markets logic launched vanguard in 1976
paradoxif true, nobody should bother researching stocks
for instance
warren buffett — beat the market for decades, calls himself the exception
long-term capital management — nobel laureates' hedge fund collapsed in 1998 anyway