in order to achieve a relatively attractive return stream, warren buffet buys stocks that are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high-quality (meaning stocks that are profitable, stable, growing, and with high payout ratios). Which form of the efficient market hypothesis does this violate?
This violates the Weak form of Efficient market Hypothesis. The form suggests that the present stock prices reflect all available data and historical analysis can be used to beat the market. Technical analysis has been used to make the trading decisions. In this case Warren Buffet has used fundamental analysis to find undervalued stocks which can be traded in to maximize gains.
in order to achieve a relatively attractive return stream, warren buffet buys stocks that are safe...