Warren Buffett is regarded as one of the world’s most successful investors. He does not believe that markets are efficient. The following quote is attributed to him: ‘I’d be a bum on the street with a tin cup if markets were always efficient. Investing in a market where people believe in efficiency is like playing bridge with someone who has been told it doesn’t do any good to look at the cards.’

Required

Explain the distinction between price and value and why many analysts engage in the practice of fundamental analysis.