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Finance allah shmoop What is the random walk hypothesis The

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market is unbeatable Trying to beat it by buying this

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stock selling that one Good luck You're this guy you

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get free real estate wherever you stop so well you

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might end up here Yep Yukon gold Well you might

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end up here yet but alligators swamp where Your lunch

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But if you take enough random walks and even if

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you find gold or ah silicon valley real estate well

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eventually you'll end up here That's the random walk theory

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Itjust claims that the market is unpredictable You can't beat

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it pretty much Just like the efficient market theory They're

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kissing cousins Well given that quite a few investors have

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beaten the market over time And a few like this

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guy have crushed it Well who could have come up

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with such an idea And like when Well it'd be

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the french of course in eighteen Sixty three This guy

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julian you know well And over time a bunch of

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other eggheads tried to mathematically prove that the market was

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unbeatable And in fact what they proved is for average

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talent people it probably is Their efforts largely revolved around

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missing the notion that buying a concentrated portfolio of a

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dozen or so for high quality companies and not buying

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into crappy industries like airlines or paper And paul for

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anything highly unionized made it a pretty decent bet that

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an individual investor over long periods of time could in

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fact beat the market And if you think about it

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you got the s and p five hundred If you

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could just get rid of the worst two or three

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hundred bottom cos down there Well the top two hundred

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probably do pretty well and you beat the market nicely

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and get rich and you go get the by portia's

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in your old age Yeah those investors Well those investors

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who beat the market They're rich The professors with the

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misguided not street smart math but who know a lot 00:01:59.663 --> [endTime] of vocabulary words Yet their professors

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