” 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 returns, even the top performers are expected to be only as good as a low-cost passive index fund. The other 97% can be expected to do worse. “


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


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


” 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 means is there’s a huge dispersion of outcomes that are totally consistent with just chance. There’s no skill involved it. It’s just good luck or bad luck. “


” Everybody wants the world to be a better place, and some think that government actions can bring that about. But they don’t take into consideration that government actions can often do more harm than good. “


” 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 competition. But beyond that, it gets very difficult. “



All 6 Eugene Fama Quotes about Good in picture


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 returns, even the top performers are expected to be only as good as a low-cost passive index fund. The other 97% can be expected to do worse.
In an efficient market, at any point in time, the actual price of a security will be a good estimate of its intrinsic value.


Debates go on to this day about what caused the Great Depression. Economics is not very good at explaining swings in economic activity.
The problem that people don
Everybody wants the world to be a better place, and some think that government actions can bring that about. But they don
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 competition. But beyond that, it gets very difficult.
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