Eugene Fama Quotes

There's no statistical evidence that human beings have an ability to move in and out of the markets effectively. It's next to impossible.

Wise investors won't try to outsmart the market.

Of course. I favor passive investing for most investors, because markets are amazingly successful devices for incorporating information into stock prices.

Successful investing is anticipating the anticipations of others.

I'm going to reveal the grand secret to getting rich by investing. It's a simple formula that has worked for Warren Buffett, Carl Icahn and all the greatest investment gurus over the years. Ready? Buy low, sell high.

My experience is that very few people have what it takes to be a successful investor, as I discussed in The Arrogance of Stock Picking.

We call ourselves 'opportunistic value investors.'

The stock market is a giant distraction from the business of investing.

Investing in stocks is an art, not a science, and people who've been trained to rigidly quantify everything have a big disadvantage.

Don't bottom fish.

I grade my stocks. I'm what they call a quant, one of the geeks of the stock market.

And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets.

Don't try to buy at the bottom and sell at the top. It can't be done except by liars.

The markets are efficient over time.

Many investors make the mistake of buying high and selling low while the exact opposite is the right strategy.

I try to buy shares of unpopular companies when they look like road kill and sell them when they've been polished up a bit.

Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.

Market timing, by the way, is a tag some buy-and-hold investors use to put down anything that involves using your brain. These are the same people who like to watch the locomotive coming and get run down in the name of discipline.

You have a class of investors and you have a class of speculators. The speculators historically haven't been big enough to cause the investors to doubt the long-term vision of stock.

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

Since we try and take a fairly buy-and-hold approach to our newsletter portfolios and don't sell at every whipsaw, we want to have a mix of stocks that will perform at both ends of the oscillation.

In college, I was told the market can't be beat.

Fundamentals make the market.

Part of my advantage is that my strength is economic forecasting, but that only works in free markets, when markets are smarter than people. That's how I started. I watched the stock market, how equities reacted to change in levels of economic activity, and I could understand how price signals worked and how to forecast them.

To beat the market you'll have to invest serious bucks to dig up information no one else has yet.