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Archive for May 5, 2012


A recent interview on CNBC by Charlie Munger right hand of Mr Warren Buffet’s  has a little for everyone to love and hate (from Keynesian-doctrine to easy-living-Greeks and Bad-trading-robots), Buffett’s right-hand was particularly eloquent in his views on Einhorn’s distrust of the Fed and buying Gold: “gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.”

He also quoted “I think gold is a great thing to sew in to your garments if you’re a Jewish family in Vienna in 1939 but I think View full article »

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Lets pick up from yesterday post. Empirical tests of the efficiency of capital markets have examined the extent to which the prices of securities reflect relevant information, i.e. pricing efficiency, because of lack of data for testing allocational and operational efficiency. Many studies have examined the extent to which it is possible to make abnormal return in excess of expected returns.

Markets are said to be “weak form efficient” if current security price reflect all past movements of share prices. It means it is not possible to make View full article »

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