[perl4ever]

I feel like I've read something recently about how there's evidence people don't actually read SEC filings.

It's kind of like the theory that open source doesn't have serious bugs because so many people read it.

You know the saying that the market can remain irrational longer than you can remain solvent? If some people don't care about doing simple analysis, and others assume that someone else is doing it, and still others accept that it's useless to do it if other people aren't, it seems like a none-too-efficient market can be a stable equilibrium.

[bobbiechen]

Similarly, the book The Big Short (Michael Lewis) notes that hedge fund manager Michael Burry read hundreds of prospectuses for mortgage bonds in the years leading up to 2008 and was "certain even then [in 2005] (and dead certain later) that he was the only human being on earth who read them, apart from the lawyers who drafted them." He ended up shorting these and profiting hundreds of millions of dollars.