[Utah]

Now you are really challenging my finance knowledge. lol. I used to do this every day but it has been 10 years.

There is a big difference is short-term versus long-term investing. The same fund managers that tie the monkeys on the short-term kick the monkey's asses in the long term.

I am getting out of my element a bit between long-term and short term because it has been a few years but I believe the reason is the discounting rate used for long-term returns by the majority of the market. For example, fund managers are under incredible short-term pressure and cant afford to wait 5 years for a stock to pan out.

This isnt inefficiency. It is just a overly strong desire for short-term gain. A clear example is illustrated in the article in the situations where a stock sells for much less than the asset value.

The investors in this article are not using any secret recipe to beat the market. They are simply willing to invest for the long haul where most investors are not. For, if an investor was willing to play in the long term they would invest in funds like Berkshire.

However, investors look at this and say, "I dont care. I want a quick home run".

I need to go read my finance books again but I believe that is how it works.