Thursday, October 23, 2008

Random Walk & Business

Here's a speculation: Proponents of the efficient market hypothosis are bright but unsucsessful busimessmen.


They have be bright in order to understand the theory behind it. However, business suceed when there is a discrepancy between the theory and the actual. Business thrives on finding inefficiency, and taking advantage of it.

That's how the financial world makes its money as well. 

Someone who doesn't belive that there is a discrepancy between the theory and the actual must not be able to detect it well, and therefore can't do well in business.

No comments: