Why You Can’t ‘Beat The Markets’
Do take 2 minutes and watch this short video.
In ‘The Wisdom of Crowds’, James Surowiecki explains how groups can be remarkably intelligent – often more so than the smartest people in them. This is particularly relevant to the price of individual stocks, or indeed other financial assets that are efficiently traded in a broad open market.
Dimensional Fund Advisors call this ‘The Power of Markets’, and in the above video they elegantly explain why you can’t beat the market – because the price is already ‘right’ on the basis of known information and crowd wisdom.