Here’s a great short video with Charles Munger talking about The Efficient Market Theory saying:
“Well I think we’ve had some effect, but they’re still teaching The Efficient Market Theory. Remember the old ideas die hard. And by the way it’s roughly right. It’s just the very hard form which everybody believed. They believed it was impossible and was rare. They thought efficiency was absolutely inevitable. Was like physics. I call it ‘Physics Envy’.That’s what they had. In the finance field they wanted to make their subject like physics.”
“Now what kind of a nut would wanna make the stock market like physics. It ain’t like physics. It’s more like a mob at a football game!”
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