The Efficient Markets Hypotheses The dominant orthodoxy in finance over the past seventy years is the Efficient Markets Hypotheses. Developed by a varied group of US academics from the early 1950’s, some of whom subsequently received Nobel prizes for their efforts, the key conclusion of this orthodoxy is that trying to beat financial markets is a fool’s errand. In practice, this has been borne out by many studies over many time periods. As neatly summarised by the academic and investor Bruce Greenwald in his book, ‘Value Investing: From Graham to Buffett and Beyond’: ‘approximately 70 per cent of active professional…

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