When Benjamin Graham was writing “The Intelligent Investor![]()
”, the market edge that American investors possessed was information asymmetry. Because there were few sources of comprehensive data–maybe there was a data chart from Moody’s here or there–the buyers and sellers of corporate stock had wildly different amounts of information at their ready access. Ty Cobb could see Coca-Cola stock rolling out across the southeastern United States and use his paychecks from playing baseball for the Detroit Tigers and endorsements from promoting Chesterfield cigarettes to build a million-dollar fortune. His regional access and insight to the product allowed him to see 20% growth in real time in a way that a Texas doctor could never imagine.
The proliferation of the internet and finance sites means that, outside of the world of micro-cap companies, it is extremely difficult to gain a competitive advantage that is the result of having knowledge that … Read the rest of this article!
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