There should just be a big picture of Warren Buffett here. It should be “The Man” explaining the efficient markets theory…which states that it’s impossible to beat the market over a sustained period. It should be Buffett who explains that all relevant information comes public, in public stocks, and that the market more or less immediately incorporates that information in its pricing. Hence, nobody can ever beat the market.
So…why should Buffett be giving this little definition? Because the efficient markets theory is wrong.
Buffett has beaten the market...for decades in a row now, in every way, shape and form. So…you have a really memorable, huge figure in finance...and then pipsqueak professors who are kind of a laughingstock whenever the wealthy power crowds gather in Omaha for their national convention.
The, uh...Woodstock of Finance, if you will. Fortunately, most people keep their clothes on for this one…