The efficient market hypothesis says that you can’t pick out which stocks are undervalued versus which are overvalued. Likewise, I claim that you can’t pick out which restaurants are underpriced versus which restaurants are overpriced.
Think you’ve found a great company, so that their stock will outperform on a risk-adjusted basis? Nope, someone [...]
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- The "Efficient Restaurant Hypothesis": a mental model for finance (and food)
- Behavioral biases don’t affect stock prices
- Yes, markets are efficient – *and* yes, stock prices are predictable
- NGDP targeting and the Friedman Rule