Top Five Posts from the 2014 European Investment Conference
John Maynard Keynes is widely regarded as a great economist. It is less known that he was also a very successful investor, pioneering techniques and establishing principles that have now become investment lore, said Elroy Dimson.
James Montier said that the idea of shareholder value maximization didn’t come from businesses but rather originated as an opinion in academia and was unsupported by much evidence.
Russell Napier, ASIP, contended that investors should be more optimistic about India than about China. His central thesis was that China’s export-driven growth model is not sustainable and its financial infrastructure is ill-equipped to support a shift toward domestic consumption as the driver of economic growth.
Milton Friedman once argued that theory without realistic assumptions or testable hypotheses is useless. By that measure, “80% of financial theory is not fit for purpose,” said Jerome Booth, head of New Sparta Limited.
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