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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (48931)	11/14/2001 11:27:48 PM
From: EnricoPalazzo	Respond to of 54805

It is interesting that indexing has a lot of fans in academia, and few on the Street. this is because the Street wants to manage your money for you, or sell you information, so the idea that the information is already to a large part priced in is anathema. in contrast, academics, whatever their faults may be, are not trying to sign me up for a wrap account with a fat fee. That's, um, one interpretation. Another interpretation is that academics are obsessed with a theory that has been repudiated in a variety of ways. The theory says, more or less: my former classmates who went to Wall Street and mades tons of money are full of crap. I'm not jealous; I'm smarter than them. You say that some investors (like Warren Buffett) have proven successful far beyond what is statistically reasonable given an efficient market? Oh yeah, well, um... mumble mumble mumble. I have a decent amount of exposure to academic finance; enough to think very little of most practitioners, and much less of the theory. The fact that beta as a proxy for risk and a predictor of return is still widely accepted in academic finance circles should tell you all you need to know. Hell, marxism has fallen out of favor more quickly. Sorry, you touched a sore point ;) ardethan@recoveringecmajor.edu