To: om3 who wrote (16870 ) 1/31/2000 6:40:00 PM From: tekboy Respond to
Welcome to the thread and the Game, Steve, and thanks for the bouquets. One of the things you've learned by now, I'm sure, that there are some posters you want to take with a whole shaker of salt (like a certain zoot-suited cash cow!). Your question is excellent, by the way, and one I've struggled with in explaining the game to others. No matter how good the companies we follow are, that is, they still would not necessarily make superb investments if the market were to price their future potential accurately: we need some market inefficiency to profit by, so where does it come from?endogenous rather than an exogenous variable--that is, good news seems to appear with striking regularity for good companies. There's an old quote to the effect that "chance favors the prepared man." Well, chance favors the prepared company too, so it may be that efficient market theory ignores more than one kind of increasing returns. Anyway, there are a lot of other people who know much more about investing here than me, so I'll shut up now, if only to avoid getting another poke in the eye from Franq. (Don't worry, he won't see that sentence cause he'll fall asleep before he gets to that part.)
