What happens when nonpublic information is shared?

Answer: it becomes regular useless information, arbitraged away by the market. (Unless you don’t believe in the efficient market hypothesis, in which case you’re reading the wrong blog! The only way to live in between those two things is to believe that you understand the mechanics of value differently or better than the market and are willing to bet on that — but even that idea, which is core to ThoughtStorm’s equity analysis tools, doesn’t detract from the EMH in any significant way. The EMH is about the market reflecting the market’s perception of value, which is NOT a discussion about “true” value.)

Put this cautionary tale about underperforming yet accurate inside information in the “memo to file: illegal things that don’t make you money” category.

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