Efficient Markets?

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When the NBA three-pointer was created, only about 3% of shots were from behind the three-point line. It took decades for teams to reach an "efficient" level of three point shooting. (An example: in the 1984-85 season, Larry Bird was hitting 43% of his three-pointers, but only shooting 1.6 of them per game.)

It often takes time for markets -- meaning the human beings who participate in markets -- to digest some news or realize the importance of some innovation. The technology was in place in 1995 to put all of your company's internal information on an "intranet" -- I know, because I was doing it -- but it took a decade for many companies to catch on.

Which brings us to our next post.

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