Daniel Solin wrote an article in October that has gotten a lot of attention, and you can read it here: “Investors: Researching Stocks Is A Total Waste Of Your Time.” While each peg is probably deserving of its own response, there is one thing in particular I want to discuss—Solin’s argument that “everything is priced into the stock.”
Solin writes: It’s not difficult to understand the reason for this underperformance. We live in a world where information is disseminated almost instantaneously. All the news that could possibly affect the price of publicly traded securities is already known to the millions of traders engaged in buying and selling stocks. And it is immediately incorporated into the price of stocks. The possibility of an individual uncovering something these traders have missed is infinitesimally small.