Eugene Fama

“An investor doesn't have a prayer of picking a manager that can deliver true alpha.”

“With less regulation, I think you would see growth come back. Of course, there are situations where you need regulation. Antitrust regulation, for example, is a good idea because you want co...”

“The problem that people don't understand is that active managers, almost by definition, have to be poorly diversified. Otherwise, they're not really active. They have to make bets. What that...”

“After 2008, my brand of finance got a bad rap.”

“State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What we don't know is whether that order will be...”

“I think bubbles are things people see with 20/20 hindsight. If you look at any particular period where prices go up and then they go down, you will always find people who predicted that they...”

“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?”

“Debates go on to this day about what caused the Great Depression. Economics is not very good at explaining swings in economic activity.”

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

“In my junior year in college, I was getting kind of tired of French. So, I took an economics course, and I loved it. The rest of my two years in college I spent in economics.”

“After costs, only the top 3% of managers produce a return that indicates they have sufficient skill to just cover their costs, which means that going forward, and despite extraordinary past...”

“People think rationally that the world really is more risky. Imagine in 2008 that investors thought there was a 10% chance we'd have a depression. That would partly justify the drop in price...”

“Economies typically do not function well in hyperinflation. The real value of government debt might disappear, but the economy is likely to disappear with it.”

“Active investment is a zero-sum game. Passive managers don't play the game. They buy something resembling the market as a whole, or some segment of the market, and they don't respond to the...”