Market Efficiency Insights
Markets cannot achieve perfect informational efficiency due to the costs associated with gathering information, which creates a necessary balance between opportunities and costs. The concept of "efficiently inefficient" suggests that some market inefficiencies are essential to incentivize information gathering. Additionally, as successful investors attract more capital, their expected returns may diminish due to diseconomies of scale, prompting a reevaluation of how to assess fund managers.In this clip
From this podcast
Capital Allocators – Inside the Institutional Investment Industry
Michael Mauboussin – Active Challenges, Rational Decisions and Team Dynamics (Capital Allocators, EP.36)
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