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Subject:  Re: EMH Date:  7/1/2011  11:00 AM
Author:  jackcrow Number:  3773 of 3810


The Columbia School of Business is pretty much the heirs to the Graham-Dodd methods of investing. Prof. Greenwaldt and Greenbladt are probably the most visible torch bearers. They do not adhere to MPT but understand that many in the market use it and its use effect on market prices.

Across town you find Dr. Damadoran who is one of the most generous profs you will ever run into. He teaches techniques that use MPT and its derivative theories and he is no fool he knows what MPT is, its strengths and weaknesses. His books "Damadoaran on Valuation" and "Valuation: Measuring the Value of Companies" are superb as is his web site. The second is full of examples and homework that you may find useful.

It certainly does not hurt to have a solid understanding of the commonly taught methods finance grad students are being taught. It provides a solid base for negotiating the investing universe from a value perspective and allows for intelligent divergence from the MPT approaches.

The real keys for non MPT approaches are finding a substitute for beta and intelligently side stepping the correlated/non-correlated asset issues. Both choices are shaped by education, experience and personality which shapes market views which in turn shapes personal investing systems and methods.

Personally I find no practical use in beta, MPT or EMH. I believe they singly or as a group do not effectively deal with market(s) and individual asset risks. I also try to respect that there is a large portion of fund managers that were trained to use those concepts in their methods.

I have no advance degree in finance, I'm just a part time investing hack.

does that help?

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