That is an oversimplification that assumes that markets are efficient and there is no information asymmetry and evrryone operates on a long investment time horizon. If Warren Buffett and I both invested in Goldman Sachs in 2008, I would have to base my decision based on quarterly earnings reports and my guesses on the direction of Fed&#x27;s monetary policy. Buffett on the other hand would be invited inside the Goldman boardroom and likely told of the company&#x27;s situation without the sort of CFO doublespeak that occurs during an earnings call.