In applying EMH to Warren Buffett, Charles Munger, William Ruane, and Walter Schloss, you would have three difficulties:(1) all have outperformed the market over long periods; (2) they have generally done so in both bullish and bearish environments, so it’s hard to argue that their higher returns simply reflect greater risk-taking; and (3) all are pursuing strategies that reflect the ideas of the late Benjamin Graham, so it’s hard to view their performance as a random event.
