A Quote by Merton Miller

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

Merton Miller

Quote Topics

Because Devices Favour Incorporating Information Investing Investors Markets Most Passive Prices Stock Stock Price Successful

Quote Author

Merton Miller
American - Economist
May 16, 1923 - June 3, 2000

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

Merton Miller

Many of us economists who believe in efficiency do so because we view markets as amazingly successful devices for reflecting new information rapidly and, for the most part, accurately.

Burton Malkiel

Strong credit markets give companies borrowing options to boost their stock prices while making bearish investors scramble to close out trades before losing any more money, both of which then push the stock market even higher and continue the self-reinforcing bullish cycle.

Kelly Evans

Stock prices are likely to be among the prices that are relatively vulnerable to purely social movements because there is no accepted theory by which to understand the worth of stocks....investors have no model or at best a very incomplete model of behavior of prices, dividend, or earnings, of speculative assets.

Robert J. Shiller

There is a natural tendency for investors to devote a significant majority of their time to finding new ideas. After all, uncovering great companies selling at great prices is the lifeblood of successful investing. But in the never-ending quest for the next great idea, investors often give short shrift to their existing investments.

Whitney Tilson

I believe that good investors are successful not because of their IQ, but because they have an investing discipline. But, what is more disciplined than a machine? A well-researched machine can make many average investors redundant, leaving behind only the really good human investors with exceptional intuition and skill.

Stanley Druckenmiller

When all feels calm and prices surge, the markets may feel safe; but, in fact, they are dangerous because few investors are focusing on risk.

Seth Klarman

Everybody has some information. The function of the markets is to aggregate that information, evaluate it and get it incorporated into prices.

Merton Miller

So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.

Merton Miller

Money and prices and markets don't give us exact information about how much our suburbs, freeways, and spandex cost. Instead, everything else is giving us accurate information: our beleaguered air and watersheds, our overworked soils, our decimated inner cities. All of these provide information our prices should be giving us but do not.

Paul Hawken

Too often, the public can fall into the trap of investing when stock prices are rising, not dropping.

Kelly Evans

Unless an investor has access to “incredibly high-qualified professionals,” they “should be 100 percent passive - that includes almost all individual investors and most institutional investors.

David F. Swensen

Many investors seem to have forgotten a hard reality: There are frequent periods when stock markets don't do much.

Jim Rogers

If you expect to be a net saver during the next 5 years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

Warren Buffett

Once again, stock markets have been threatened with extinction for almost 75 years, and I have found that stock markets are harder to kill than roaches.