The efficient markets hypothesis is flawed because academic theory fails to account for practical market realities; academics can theorize about markets sitting in institutions, but practitioners at trading desks observe significant inefficiencies that would be apparent if theorists actually engaged in real trading.

causalpending

Speaker

Seth Klarman

Evidence Quote

sit down at the trading desk of mutual shares they might have seen what really inefficient markets look like and realize that what's true in theory isn't true in practice in every case

Source

Seth Klarman – Timeless Value Investing (EP.328)Capital Allocators with Ted Seides
Created: 8/12/2026, 5:57:12 PM

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