Where research gets a re-visit

If you are a student of finance, you must have surely heard or seen the infamous Black- Scholes option pricing model. For those who do not about the model, it is basically an equation or a framework by which we can determine the prices of options. Options are one of the major financial derivative security. Fischer Black and Myron Scholes published the paper in 1973 thereby developing the whole derivatives industry.  The famous Black- Scholes Option Pricing Model The above is the formula for which Fischer Black is most well known. However, there is another paper he published in 1986 in the Journal of Finance titled "NOISE" . This paper I believe is very much relevant in today's Finance and Economics industry. Actually, if you think about it, it goes beyond just Finance and Economics and can be traced back to every major discipline or event that happens in our world on daily basis. So, let's start by reviewing what Black thinks about NOISE. The reality of the world: Noi...

I cannot exactly remember what was the thing that made me so much interested in the Investment management business. If my memory serves me right, I think it was a documentary of Warren Buffet that I saw about 9 years ago. It was really something special, a true eye-opener for me, at least at that time. From there onwards, I got introduced to the world of value investing and along with that many such notable value investors like Charlie Munger, Joel Greenblatt, Monish Phabrai, Guy Spier just to name a few. I read everything I could find for free on the internet. After that, I went for books thinking that this is the secret to success. And, by success here I mean to make big money. As time went on, I began to dig deeper into the world of investments and different investment and trading strategies. At this point, I had pretty much a thorough understanding of how do value investing works.  After a while, I started to realize many things that I felt pretty uncomfortable about. The whole...