Tightwad wrote:
The Intelligent Investor by Ben Graham
I greatly admire Graham but he did his own value investing in an age when information wasn't so readily available. EMH states that an efficient market is such because it accounts for information as soon as it becomes publicly available. The constant flow of new information creates the volatility we see in the market today, i.e. the "random walk." Also note that Graham himself said the following:
Quote:
In general, no. I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when our textbook "Graham and Dodd" was first published; but the situation has changed a great deal since then. In the old days any well-trained security analyst could do a good professional job of selecting undervalued issues through detailed studies; but in the light of the enormous amount of research now being carried on, I doubt whether in most cases such extensive efforts will generate sufficiently superior selections to justify their cost. To that very limited extent I'm on the side of the "efficient market" school of thought now generally accepted by the professors.
You can read the entire interview
here. Tightwad's recommendation is great reading written by a great investor but I don't believe that it's good book to use as a foundation for investing today due to the wide availability of information.
