Books such as "One Up on Wall Street," not to mention the web sites of countless investment managers, suggest an active investor can consistently earn higher returns than the overall market. Eugene Fama, famous for his Efficient Market Hypothesis paper, once said "I'd compare stock pickers to astrologers, but I don't want to bad-mouth astrologers." Is one style better than the other, and are there any areas of common agreement? This talk summarizes the principles and practice of each approach, and hopefully provokes a lively discussion.
In previous Silicon Valley Roundtable talks, Bob Sawyer has addressed the open source business model and the question "Do Computers Improve Productivity?". Bob is a consultant at Open Index Investors (www.openindexinvestors.com). Prior to that, Bob held product management and marketing positions at IBM, Solid Information Technology, Panta, HP, Compaq and Tandem. Bob holds a bachelors degree from Northwestern University and a Masterís degree from the Kellogg School of Management. He resides in Woodside, California with his wife and two children.