9. How Investors Like Warren Buffett Use Market Inefficiency To Make Great Returns
Some of the best investment returns can come from market inefficiencies. An inefficient market is one where the price of a stock is below its true value – It’s like the stock is selling at a discount!
Certain special situations in markets produce inefficiencies. Warren Buffett and other big investors have often taken advantage of these special situations. Special situations don’t come up too often, but when they do, they provide opportunities for great returns. In this episode we discuss special situations including illiquidity, information asymmetry, forced selling, investing in smaller markets, and investing in companies with little analyst coverage. These are all special situations that various big investors have used to get an advantage and generate great returns. Listen to this episode to learn more.
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This podcast is for entertainment purposes only and should not be relied upon as the basis for investment decisions. Before making any decisions, consult a professional. I may maintain positions in the securities discussed on this podcast. This show is copyrighted by the Wall Street Vision, written permission must be granted before syndication or rebroadcasting.