Tiger Woman on Wall Street: Winning Business Strategies from Shanghai to New York and Back

Note to Investors: Do Your Homework

I am in the equity research business because I firmly believe that the equity market is not efficient. The efficient market hypothesis asserts that financial asset prices fully reflect all available information at all times and that therefore no one can systematically outperform the market by using an informational advantage. The efficient market hypothesis says that you can beat the market only through luck. The spectacular and repeated failure of the efficient market hypothesis has barely dented its popularity, even following the financial crisis that erupted at the end of 2007.

Market inefficiency exists when any of the following four forms of knowledge is missing or misunderstood:

1. Raw data

2. Gleaned ...