The Meb Faber Show - Better Investing
Professor Kenneth French on Risk, Return, and Rationality | #530
Apr 19, 2024
Professor Kenneth French, Roth Family Distinguished Professor of Finance at Tuck School of Business, discusses long-term investing, global market portfolio, stock buybacks misconceptions, human capital, and improving financial education with Meb Faber.
56:00
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Quick takeaways
- Professor French challenges market efficiency views by highlighting pricing mistakes, supporting long-term rational investing.
- Stock labeling trends like 'fangs' are debunked, emphasizing past performance fallacies and the importance of market understanding.
Deep dives
Understanding the Differences in Market Efficiency Views
Market efficiency views between Professor Fama and Professor French are explored in the podcast. While Fama believes prices are almost always right, French argues that there are plenty of pricing mistakes. The scarcity of individuals who can consistently predict prices challenges the idea of beating the market, aligning both professors' viewpoints on investment outcomes.
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