Flow-based pricing is more intuitive and grounded than EMH because it rests on basic supply-and-demand intuition: if you want something and someone doesn't want to sell, you raise your bid until they capitulate, whereas EMH assumes costless information aggregation with no friction.
normativepending
Speaker
Dave NodicEvidence Quote
“I think to me as an investor focusing on flows seems much more intuitive because at least there I have some very explain it like I'm five uh foundations to understand which is that if I want something and Mike doesn't want to sell it to me, I'm going to raise my demand until you eventually capitulate and say fine. If you want to pay me a billion dollars for my bicycle, I will sell you my bicycle. That feels much more human and intuitive in terms of how we actually get to pricing behavior.”
Source
The Trillion Dollar Trap | Mike Green on Passive Investing's Fatal Design Flaw— Excess ReturnsCreated: 8/11/2026, 5:27:10 AM
My Notes
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