“From this body of research I think we must conclude that models that estimate fair value using economic and business data will not give you any advantage over other investors. If they did, we would expect to see above-average investment performance by stock market mutual funds, because their managers have access to the best earnings forecast models. We would also expect such market-beating performance to persist from year to year for specific mutual funds, because it is the mutual fund management firm that pays for the models and these models would be available to any manager who works for the management firm.”
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