Eugene Fama Quotes

The proposition is that prices reflect all available information, which in simple terms means since prices reflect all available information, there's no way to beat the market.

I don't entirely reject the idea of efficient markets. It needs updating.

I am not well qualified to criticize the theory of rational expectations and the efficient market hypothesis because as a market participant I considered them so unrealistic that I never bothered to study them.

But whatever the consensus on the EMH, I know of no serious academic, professional money manager, trained security analyst, or intelligent individual investor who would disagree with the thrust of EMH: The stock market itself is a demanding taskmaster. It sets a high hurdle that few investors can leap.

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.

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

The stock market is a discounter of all known information.

The stock market to me was like a video game. When it went off, it was like turning the game off. It wasn't something I'd think about until I'd turn the machine on again.

I was about thirteen when I started thinking about the stock market. My dad helped me a little bit. I'd see it in the 'Santa Barbara News-Press.' These prices would change every day - what was that all about?

You're looking for a mispriced gamble. That's what investing is. And you have to know enough to know whether the gamble is mispriced. That's value investing.

The good news is, the stock market is closed and it can't hurt us again until tomorrow.

The generally accepted view is that markets are always right -- that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the future.

The sad truth is that it is precisely those who disagree most with the hypothesis of efficient market pricing of stocks, those who pooh-pooh beta analysis and all that, who are least able to understand the analysis needed to test that hypothesis.

I think any statement about stock prices is always suspect unless it's made by Warren Buffett.

I have never believed that large-cap stocks are too well followed to be anything but efficiently priced.

My father was really into it. We would wake up in the morning and look at the markets.

It is absurd to think that the general public can ever make money out of market forecasts.

To establish the right price for a stock, the market must have adequate information, but it by no means follows that is the market has this information it will thereupon establish the right price.

The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient.

FISHER SEES STOCKS PERMANENTLY HIGH

99% of fund managers demonstrate no evidence of skill whatsoever.

Fundamental analysis seeks to establish how underlying values are reflected in stock prices, whereas the theory of reflexivity shows how stock prices can influence underlying values

I never hesitate to tell a man that I am bullish or bearish. But I do not tell people to buy or sell any particular stock. In a bear market all stocks go down and in a bull market they go up.

I have a name for people who went to the extreme efficient market theory-which is "bonkers". It was an intellectually consistent theory that enabled them to do pretty mathematics. So I understand its seductiveness to people with large mathematical gifts. It just had a difficulty in that the fundamental assumption did not tie properly to reality.

Even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonable priced.