The irrational minority

Chris Dillow

Chris Dillow
The irrational minority

One common objection to the idea that share prices are driven by irrational investors is that, over time, they should be driven out of the market as the smarter money profits at their expense. Very often, however, this claim is wrong as a new paper by Ulrike Malmendier at the University of California at Berkeley shows. She describes how markets sometimes actually select in favour of irrational buyers.

Join our community of smart investors

Subscribe today and enjoy unlimited access:

  • Comprehensive companies coverage
  • Actionable commentary, ideas and portfolios
  • Tools and data to help you manage and track investments.
  • Help managing your portfolio 
Explore subscription options
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now