Quotessence
Home / Quotes / Quote by Michael Jensen

Quote by Michael Jensen

“There is no other proposition in economics that has more solid empirical evidence supporting it than the Efficient Market Hypothesis... In the literature of finance, accounting, and the economics of uncertainty, the EMH is accepted as a fact of life.”

Quote by Michael Jensen

Create image

Author

Michael Jensen
Michael Jensen

Michael Jensen is a renowned economist, born on November 30, 1939. He has made significant contributions to the fields of corporate governance and corporate finance. more

You May Also Like

“The commission of the investment sins listed above is not limited to 'the little guy.' Huge institutional investors, viewed as a group, have long underperformed the unsophisticated index-fund investor who simply sits tight for decades. A major reason has been fees: Many institutions pay substantial sums to consultants who, in turn, recommend high-fee managers. And that is a fool's game.”

LittlesLongHas BeensReasonGuyTurnsGamesSinPayGroupsHugeFoolMajorsInstitutionsInvestmentInvestingDecadesManagersFundInvestorsFeesConsultantsIndex Funds
Author:Warren Buffett
Create image

“The genesis of a poem for me is usually a cluster of words. The only good metaphor I can think of is a scientific one: dipping a thread into a supersaturated solution to induce crystal formation. I don't think I solve problems in my poetry; I think I uncover the problems.”

ThinkingI CanProblemSolutionsMetaphorSolveThreadCrystalsFormationGenesisClusters
Book:Waltzing Again: New and Selected Conversations with Margaret Atwood
Create image

“Santa Claus and the Easter Bunny should take a few pointers from the mutual-fund industry. All three are trying to pull off elaborate hoaxes. But while Santa and the bunny suffer the derision of eight year olds everywhere, actively-managed stock funds still have an ardent following among otherwise clear-thinking adults. This continued loyalty amazes me. Reams of statistics prove that most of the fund industry's stock pickers fail to beat the market.”

ThinkingShouldTryingYearsStillsSufferingThreeClearFailingIndustryProveBeatsAdultsInvestingFollowingEightLoyaltyFundMutualStatisticsEasterSantaSanta ClausArdentBunniesMutual FundDerisionHoaxesPointersClear ThinkingEaster Bunny
Author:Jonathan Clements
Create image

“Nothing highlights better the continuing gap between rhetoric and substance in British financial services than the failure of providers here to emulate Jack Bogle's index fund success in the United States. Every professional in the City knows that index funds should be core building blocks in any long-term investor's portfolio. Since 1976, the Vanguard index funds has produced a compound annual return of 12 percent, better than three-quarters of its peer group.”

KnowsShouldLongStatesThreeTermUnitedCitiesUnited StatesGroupsBuildingReturnPercentInvestingFinancialBritishCoreBlockSubstanceLong TermFundGapsInvestorsQuartersContinuingRhetoricPeersCompoundsAnnualsHighlightsEmulateProvidersPortfoliosBuilding BlocksVanguardIndex FundsFinancial ServicesPeer Group
Author:Jonathan Davis
Create image

“Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That's what people should be concerned with in their investment decisions and not with whether they can pick stocks, pick winners and losers among the various managers delivering basically the same product.”

PeopleShouldDifferentDecisionRiskProductsReturnPicksConcernedInvestmentInvestingVariousExpectedManagersWinnerDimensionsLoserEfficientDeliveringWinner And LoserDifferent Dimensions
Author:Eugene Fama
Create image

“People would be a lot more skeptical if they understood that there is an incredible amount of chance in the results that you observe for active managers. So the distribution of outcomes is enormously wide - but that's exactly what you'd expect by chance with lots of active managers who hold imperfectly diversified portfolios. The really good portfolios contain a lot of really lucky picks, and the really bad portfolios contain a lot of really unlucky picks as well as some really bad ones.”

PeopleIfsWellsWould BeChanceResultsAmountLuckyPicksUnderstoodIncrediblesInvestingActiveWideManagersOutcomesDistributionSkepticalUnluckyPortfolios
Author:Eugene Fama
Create image