I’ve posted Entry #166 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Last Week’s Nobel Prize Award Is an Acknowledgment That We Do Not Today Know How Stock Investing Works.
Juicy Excerpt: It was a diplomatic act to award the prize to both men. It was not a logically consistent act to do so. One of the two men is right about how stock investing works. One of the two men is wrong about how stock investing works.
By having the two men share the award, the committee is implicitly saying that they do not know how stock investing works; they are saying that this is today an open question.
That’s true. It IS an open question.
It is also an amazing and scary reality.