Pretty concise answer there MH. I must say I have been trying to get up to date with the research here and any1 who thinks its as simple as markets are efficient/investors are rational is crazy. there is difference between something being absolutely wrong and mostly right.
also I would say the general tools and ideas are really useful. a lot of the biggest funds (DFA, LSV, AQR) employ these people. Your general idea of MPT seems to be stuck in the 60s, you should check out some of the more recent stuff. its tough but worth it. the other thing is china linen isn't a great stock. making mistakes is fine but the problem comes when you mistake your lack of knowledge for a lack of contradictory evidence. know what you don't know.
Hmmm yes you may be correct. I admit I have not dug deep into some of the more modern takes on MPT. And I thank everyone who has contributed to the discussion. And I will check some of the more recent stuff. Lol and I am aware that it is not as simple as the examples I gave. If I were to give a full and complete answer I would probably have to write 30 pages on it lol.
Would you mind sharing why you don't think China Linen is a great stock?