Active management is a zero-sum game before cost, and the winners have to win at the expense of the losers.
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 pu… - 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 pu…
- Eugene Fama
People would be a lot more skeptical if they understood that there is an incredible amount of chance in the results that you observe for active manag… - Eugene Fama
People would be a lot more skeptical if they understood that there is an incredible amount of chance in the results that you observe for active manag…
I’d compare stock pickers to astrologers but I don’t want to bad mouth astrologers. - Eugene Fama
I’d compare stock pickers to astrologers but I don’t want to bad mouth astrologers.
Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That's what people shou… - 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 shou…
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 th… - 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 th…
The distribution of the market is fat-tailed relative to the normal distribution... For passive investors, none of this matters, beyond being aware t… - 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 t…
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.… - 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.…
After taking risk into account, do more managers than you’d see by chance outperform with persistence? Virtually every economist who studied this que… - 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 que…
I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information. - Eugene Fama
I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information.
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