11+ Eugene Fama Quotes On Education, Economics And Family

Eugene Fama is an American economist who is best known for his work in the field of finance. He is widely regarded as one of the founders of the efficient market hypothesis, which states that stock prices reflect all available information. Fama is a professor at the University of Chicago Booth School of Business and a recipient of the Nobel Prize in Economic Sciences. Following is our collection on famous quotes by Eugene Fama on education, economics, family.

I’d compare stock pickers to astrologers but I don’t want to bad mouth astrologers. — Eugene Fama

Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That's what people should be concerned with in their investment decisions and not with whether they can pick stocks, pick winners and losers among the various managers delivering basically the same product. — Eugene Fama

I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information. — Eugene Fama

In an efficient market at any point in time the actual price of a security will be a good estimate of its intrinsic value. — Eugene Fama

I can't figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of the same question. Since I think everything is appropriately priced, my advice would be to avoid high fees. So you can forget about hedge funds. — Eugene Fama

Active management is a zero-sum game before cost, and the winners have to win at the expense of the losers. — Eugene Fama

The efficient market theory is one of the better models in the sense that it can be taken as true for every purpose I can think of. For investment purposes, there are very few investors that shouldn't behave as if markets are totally efficient. — Eugene Fama

After taking risk into account, do more managers than you’d see by chance outperform with persistence? Virtually every economist who studied this question answers with a resounding 'no.' — Eugene Fama

The distribution of the market is fat-tailed relative to the normal distribution... For passive investors, none of this matters, beyond being aware that outlier returns are more common than would be expected if return distributions were normal. — Eugene Fama

I don't even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that people save too much during that period? I don't know what a credit bubble means. I don't even know what a bubble means. These words have become popular. I don't think they have any meaning. — Eugene Fama

I don't think the Federal Reserve has any role in how high rates are right now. I don't understand why everyone is paying attention to this tapering. The Fed is using one kind of bond to buy another kind of bond. What's the big deal, and why is anyone taking the Fed seriously? — Eugene Fama

Life Lessons by Eugene Fama

1. Eugene Fama's work highlights the importance of efficient markets, emphasizing the idea that markets are generally efficient and that it is difficult to outperform the market.
2. His research also demonstrates the importance of diversification, showing that asset allocation is a key factor in portfolio performance.
3. Fama's work has also shown that past performance is not necessarily indicative of future returns, emphasizing the importance of long-term financial planning.