Efficient Market Quotes

#1. The efficient market theory is one of the better models in the sense that it can be taken as true for every purpose I can think of. For investment purposes, there are very few investors that shouldn't behave as if markets are totally efficient.

Eugene Fama

#2. If I subscribed to the efficient market theory I would still be delivering papers

Warren Buffett

#3. What the efficient market hypothesis doesn't account for is that people are not always rational. Just ask any divorce lawyer.

Coreen T. Sol

#4. When I started eBay, it was a hobby, an experiment to see if people could use the Internet to be empowered through access to an efficient market. I actually wasn't thinking about it in terms of a social impact.

Pierre Omidyar

#5. The sad truth is that it is precisely those who disagree most with the hypothesis of efficient market pricing of stocks, those who pooh-pooh beta analysis and all that, who are least able to understand the analysis needed to test that hypothesis.

Paul Samuelson

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

Eugene Fama

#7. The efficient market hypothesis (EMH) explains this phenomenon: current market prices reflect the total knowledge and expectations of all investors, and it is highly unlikely that one investor can know more than the market does collectively. For

Larry E. Swedroe

#8. I am not well qualified to criticize the theory of rational expectations and the efficient market hypothesis because as a market participant I considered them so unrealistic that I never bothered to study them.

George Soros

#9. Value investing is predicated on the efficient market hypothesis being wrong.

Seth Klarman

#10. 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.

Michael Jensen

#11. Observing that the market was FREQUENTLY efficient, EMT Adherents went on to conclude incorrectly that it was ALWAYS efficient. The difference between these propositions is night and day.

Warren Buffett

#12. Capitalism is astonishingly efficient at generating new wealth, but it operates beneficently only
when the market is shaped by moral forces coming from both the law and the culture-derived ultimately from religion.

Charles W. Colson

#13. Haitian rice farmers are quite efficient, but they can't compete with U.S. agribusiness that relies on a huge government subsidy, thanks to Ronald Reagan's free market enthusiasms.

Noam Chomsky

#14. The defender of the dogmas of modern finance and efficient markets started a fund that took advantage of market inefficiencies! It is as if the Pope converted to Islam.

Nassim Nicholas Taleb

#15. America used to be a uniquely productive, low-cost place to do business. We had efficient infrastructure. We had limited regulation. We believed in the market.

Michael Porter

#16. In the end, all new schools, public or private, snobby or not, add value to the education market, making it bigger and more efficient, in the same way that Zuckerberg added wealth to the economy even for non-Facebook fans.

Amity Shlaes

#17. The sort of the most efficient way for online dating marketplace to evolve and, in fact, any marketplace to evolve is to have one really big market where people can enter and exit as they please, where people have really advanced search, sort, and filtering technology.

Sam Yagan

#18. It is something of a miracle that individual selfish decisions (in a market economy) must lead to a collectively efficient outcome.

Steven Landsburg

#19. We make two assumptions that are vital to the arguments in this book: There are active managers that can beat the market (i.e., the market is not completely efficient). Superior active managers can be identified.

Meb Faber

#20. City planning finds its validation in the intuitive recognition that a burgeoning market society can not be trusted to produce spontaneously a habitable, sanitary, or even efficient city, much less a beautiful one.

Murray Bookchin

#21. I recognized that information was, in many respects, like a public good, and it was this insight that made it clear to me that it was unlikely that the private market would provide efficient resource allocations whenever information was endogenous.

Joseph Stiglitz

#22. Under the tenets of behavioral finance, markets are not always efficient. It is human behavior that moves markets and not the universal information shared by market participants.

Gary Antonacci

#23. Economic activity, especially the activity of a market economy, cannot be conducted in an institutional, juridical or political vacuum. On the contrary, it presupposes sure guarantees of individual freedom and private property, as well as a stable currency and efficient public services.

Pope John Paul II

#24. It would appear that, on the level of individual nations and of international relations, the free market is the most efficient instrument for utilizing resources and effectively responding to needs.

Pope John Paul II

#25. The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient.

Warren Buffett

#26. We do not have free market capitalism in America; we have crony capitalism. There is a huge difference between free market capitalism that democratizes a country and makes us more efficient and prosperous and corporate crony capitalism.

Robert F. Kennedy Jr.

#27. The free market is not only a more efficient decision maker than even the wisest central planning body, but even more important, the free market keeps economic power widely dispersed.

Milton Friedman

#28. The market is a mechanism for sorting the efficient from the inefficient, it is not a substitute for responsibility.

Charles Handy

#29. The market is incredibly inefficient and capable on rare occasions of being utterly dysfunctional. And people have a really hard time getting their brain around that fact. They want to believe that it's approximately efficient almost all the time, and it simply isn't true.

Jeremy Grantham

#30. If you thought the advent of the Internet, the spread of cheap and efficient information technology, and the growing fragmentation of the consumer market were all going to help smaller companies thrive at the expense of the slow-moving giants of the Fortune 500, apparently you were wrong.

James Surowiecki

#31. Barge traffic on the Mississippi River represents the most efficient, most cost-effective, most environmentally sound means of transporting commodity goods from this region of the country to market.

Leonard Boswell

#32. There is no reason why, with the huge potential for market out there in the world for fuel-efficient vehicles, we can't be the cutting edge for change.

Jennifer Granholm