Is The Efficient Market Theory really 100% true?

Question

Does not the performance over the long run of Warren Buffett lead to the conclusion that the above is not inviolable, and that there are anomalies always that disprove it?

Answer 1

Efficient Market Theory is 100% false.
According to Warren Buffett, the best investor in the world:

"I'd be a bum in the street with a tin cup if the markets were efficient."

Answer 2

Poor, academic finance scholars believe in the efficient market theory. Wealthy investors and investment managers such as Buffett do not, at least in all time frames. I do believe Buffett believes that the market eventually gets it right, he just takes advantage at times when he doesn't think it's right.

Who would you rather believe, the scholars or the guys that actually successfully beat the market?

Answer 3

No investment theory is 100% true. If it were, then everyone could use it and get rich, but then if everyone uses it, it ceases to be true.

So yes, it can be disproved. Numbers are funny. 10 different people can look at the exact same pool of data and come up with 10 different ways to spin that data to make whatever point they want look valid.

Hmmmmm.....

Answer 4

Its only true if all the assumptions are correct.in anycase those assumptions that are made cant conform 100% to society and our current econmies do to exclusion of certain changing factors.As noted its only a theory that cant actually be put into practice cause you cant control all the inputs.

Answer 5

Of course not, you can generally tell by the fact that it is called a theory. If it were 100% true then it would be called a law. (or perhaps a postulate or something)

Answer 6

It is 100% false......if it is true, everyone get rich.

Consumer Reports Money Advisor Magazine
http://www.magazineicon.com/product.php?productid=17005&cat=253&page=2

Peace

Answer 7

there are no absolute truths