economy
The Illusion of Transparency in 21st Century Equities
Buffet had been merely arbitraging information accessible to him in the past, yet now his advantage diminished so greatly that some have claimed he even underperformed the S&P since 2000.
TL;DR
- Uniform disclosure patterns for earnings information, implemented in 2000, reduced informational arbitrage advantages.
- Quarterly earnings reports incentivize short-term returns over long-term viability and business development.
- The policy creates a false sense of informational parity, as well-connected individuals still maintain an edge.
- Frequent reporting is costly for businesses and the public, and the three-month window is insufficient for significant business development.
- The rules shift costs to the public through direct expenses and decreased operational efficiency, hindering economic and technological development.