👉 Buyers' math, also known as the Efficient Market Hypothesis (EMH), is a theoretical framework suggesting that financial markets are informationally efficient, meaning asset prices reflect all available information at any given time. This implies that it's impossible to consistently achieve higher returns than the market average through stock picking or market timing, as any new information is quickly incorporated into prices. Buyers' math posits that if an investment appears overvalued or undervalued based on current prices, it will eventually be corrected by market forces, making it difficult to outperform the market through active management. In essence, buying on the basis of this math means capitalizing on market inefficiencies that are expected to be corrected over time, but only after the correction has occurred.
