Poor Charlie's Almanack: The Essential Wit and Wisdom of Charles T. Munger · chapter 2 · id poor-charlies-almanack-c2-05-munger-argues-that-the-capital

“Munger argues that the Capital Asset Pricing Model (CAPM) and beta as a risk measure are fundamentally flawed because volatility does not equal risk.”

holdsconfidence: high✓ ZHP-verified + red-teamed

Receipts

Fama & French, 'The Cross-Section of Expected Stock Returns,' Journal of Finance (1992)DOI registry: valid

The relation between beta and average return for 1941-1990 is weak.

Fama & French, 'The CAPM: Theory and Evidence,' Journal of Economic Perspectives (2004)FLAGGED: DOI not in registry

Despite its appealing simplicity, the empirical record of the CAPM is poor -- poor enough to invalidate the way it is used in applications.

This claim is a stable, citable object. If you can falsify a verdict, tell us — corrections are loud here.