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Customer Quote by Warren Buffett

“Observing that the market was FREQUENTLY efficient, EMT Adherents went on to conclude incorrectly that it was ALWAYS efficient. The difference between these propositions is night and day.” quote by Warren Buffett
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“Observing that the market was FREQUENTLY efficient, EMT Adherents went on to conclude incorrectly that it was ALWAYS efficient. The difference between these propositions is night and day.”

Warren Buffett

About This Quote

Source Speech: Annual Shareholder Letter, Berkshire Hathaway, 1996

People often mistake frequent market efficiency for constant efficiency, ignoring variability.

In simple terms: Frequent efficiency ≠ constant efficiency.

Key Takeaway

Recognize market conditions change.

Themes

economics finance decisionmaking

Mood

cautious analytical

Type

advice analytical

When to use this quote

  • investing
  • risk assessment
  • portfolio management

Key Concepts

efficiency probability bias

Questions to Reflect On

  • How do you test for market efficiency?
  • What data shows efficiency varies?
A Different Perspective

Efficiency can be overstated in volatile periods.

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