# Efficient Market Hypothesis

> Source: https://ollybritton.com/notes/rationality/concepts/efficient-market-hypothesis/ · Updated: 2020-12-28 · Tags: safe-to-post-online

##### What does the Efficient-market hypothesis state??
Asset prices reflect all available information.

##### What is the implication of the Efficient-market hypothesis??
You shouldn't expect to beat the market without a unique edge, except by chance.

##### How did Warren Buffet beat the market??
By running simple formulas over stock prices.

##### Why can you no longer use Warren Buffet's method for beating the market??
The market became more efficient as everyone became aware of the edge.

## References
* [Kindly Stop Saying the Efficient Market Hypothesis is Dead](https://thedeepdish.org/efficient-market-hypothesis-is-not-dead/), The Deep Dish

---
Olly Britton — https://ollybritton.com. Machine-readable index: https://ollybritton.com/llms.txt