Are We Naive Idiots For Thinking Business Can Be Anything But Greedy?: "John Maynard Keynes had it right when he likened short-term investing in the stock market to betting on the result of a 'beauty contest.' The skill needed to succeed in that is to be good at forecasting who other judges (investors) would find most beautiful -- not to be a good judge of actual beauty."...
..."The obsessive pursuit of short-term profits and a higher share price tomorrow led capitalism badly astray. Business leaders and investors alike were seduced by the idea -- known in academia as the "efficient market hypothesis" -- that the current share price told you all you needed to know about the value of a company. As it turns out, it tells you very little, other than about the state of mind of investors." - from 'The Road From Ruin' by Matthew Bishop
Thursday, March 25, 2010
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