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To: Moominoid who wrote (63499)	5/5/2005 6:53:09 PM
From: energyplay	Respond to of 74559

EMH works well within a given sector for roughtly similar size companies. The valuation of Intel vs. AMD or Exxon /BP /Shell seem to be useful and reality based. Comparing the valuations of Intel vs. Chevron-Texaco doesn't work.... Some sectors are mis-priced for years - oil (low) tech (high) *************** I have no clue how to evaluate EBAY or most Biotechs.

To: Moominoid who wrote (63499)	5/5/2005 9:50:12 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 74559

The Efficient Market Hypothesis claims that market participants will price all that is known into a market. If one or more participants is crazy and choose to purchase at an irrational price, the rational participants will take advantage of this mis-pricing by selling to them. The Efficient Market Hypothesis is not predictive of reality. As Warren Buffett chortles, If the markets were efficient I couldn't do what I do." At Chevron, we called believers in the Efficient Market Hypothesis "Quant Fools". They created very complex computer models which they believed with all of their heart and mind. The Quant Fool computer conclusions were always laughably wrong on their face and with the passage of time became a true farce. .