He claimed he didn’t pick these people because they already had an outstanding track record. He said he selected these people years ago based upon their framework for investment decision-making. Of course finance professors didn’t believe him, and many questioned his motivation. Warren Buffett was arguing that markets were inefficient, whereas professors were arguing they were.That speech was back in 1984. Who was correct--Warren Buffett or the finance professors?Insider Monkey has the score at Business Insider.
Saturday, December 4, 2010
Was Buffett's 1984 Prediction Proven Correct?
In a speech arguing that the efficient market theory is bogus, Warren Buffett identified 9 fund managers who he said would beat the market.