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Market inefficiencies can be exploited by savvy investors from "summary" of A Random Walk Down Wall Street by Burton Gordon Malkiel
The stock market is a place where investors buy and sell securities in the hopes of making a profit. However, not all investors are created equal. Some are more skillful than others at predicting the future direction of stock prices. These savvy investors have the ability to exploit market inefficiencies to their advantage. Market inefficiencies can arise for a variety of reasons. One common cause is the irrational behavior of investors. People are not always rational when it comes to making investment decisions. They may buy or sell stocks based on emotions rather than on sound financial analysis. This can lead to price distortions that savvy investors can exploit. Another source of market inefficiencie...
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