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Academic Research Destroys Stock Values

Academics are often called out of touch or cloistered, and are condemned for pursuing research that’s irrelevant to daily life. New research, however, points to a powerful exception:

Simply by publishing an academic paper, a professor can demolish your investment strategy.

Buy stocks that recently did well, focus on firms that reinvest profits—it doesn’t matter. If a finance scholar writes about your strategy, over the next decade or so your returns will shrink by more than one-third.

That’s tru…