If all knowable information is reflected in share prices at all times, then one will not make money by knowing what everyone else knows.
Knowing what others don’t is the edge.
Knowledge is power, even when it comes to investing. The knowledge that comes from deep understanding of that which others have not understood yet.
He / She with the most information wins.
Now we’re not talking about the insider knowledge from within the company, which is illegal to obtain and trade on. Companies are bound by law and ASIC’s continuous disclosure agreement to immediately disclose market sensitive news to the public.
To explain how the apparent knowledge doesn’t impact share prices, let’s use an example.