This will be my final piece on investing as I look to take a break from writing. It represents the culmination of not only my own investing experiences to date, but the work of countless others that have come before me. They form the foundation of all that I know about investing, and I hope you find it useful.

The markets are generally efficient at pricing securities. So in that way, I do agree with the general notion of the efficient market theory. What we exploit, and how we invest is to find pockets of market inefficiency, and to exploit the differences between price and intrinsic value.

To understand where to look for market inefficiencies, it’s easiest to examine the underlying assumptions of the efficient market theory. I will be covering the ones which I feel most pertinent.

Imperfect information:

The more coverage a stock receives, the harder it is ...