This excerpt from James Montier's "Value Investing" critically examines conventional financial wisdom, particularly the Efficient Markets Hypothesis, and advocates for a skeptical, evidence-based value investing approach.

Montier explores numerous psychological biases that hinder sound investment decisions, emphasizing the importance of contrarian thinking, patience, and simplicity.

He supports his arguments with historical data and behavioral studies, offering practical insights into identifying undervalued assets and avoiding common pitfalls.

The text also addresses topics like short selling, risk management, and the recurring nature of market cycles, ultimately promoting a disciplined and long-term perspective rooted in fundamental value.