I think the implication that in order for small value stocks to outperform over time, investors in large growth names like Google must be somehow 'less informed' is false. Instead, investors in those kinds of stocks could simply be willing to accept lower expected returns. Perhaps they find large growth stocks less risky, and in fact they may be, so there is no need to pronounce those investors irrational. All stocks do not need to offer identical expected returns even in a perfectly rational, efficient market.