Eugene Fama Quotes

The markets are efficient over time.

Successful investing is anticipating the anticipations of others.

The one thing about markets is that they do not give any advance notice. If they did, they would be arbitraged away.

I was convinced that the trading frequency measured a fundamental heartbeat of financial markets. Clearly it reflected the flow of information. It turns out also to be closely related to measures of liquidity.

There are two ways to approach the market. You can guess which direction prices will go in next, or you can figure out what businesses and their securities are really worth.

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

Market timing doesn't work. If all the bubbles and all this mispricing really exist, how come so few people see it before it turns out that way?

Wise investors won't try to outsmart the market.

He really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.

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

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.

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.

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

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.

Whenever you try to pick market tops and bottoms, you are making a prediction. Guessing what stock is going to outperform the market is forecasting, as is selling a stock for no apparent reason. Indeed, nearly all capital decisions made by most people are unconscious predictions.

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

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.

Everybody thinks that they're going to time the market, they're going to sharpshoot the market, and buy right at the bottom. The truth of the matter is that nobody is good at it.

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

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.

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

The key thing when you short is to make sure you're not wrong on the fundamental intrinsic value.

I think a lot of hedge funds get their trades from Wall Street and get their ideas from Wall Street. And I just like to find my own ideas. I'm reading a lot; I read a lot of news. I'm addicted to it. I basically - I follow my nose on news stories.