Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.
Merton MillerTo beat the market you'll have to invest serious bucks to dig up information no one else has yet.
Merton MillerI favour passive investing for most investors, because markets are amazingly successful devices for incorporating information into stock prices.
Merton MillerEverybody has some information. The function of the markets is to aggregate that information, evaluate it and get it incorporated into prices.
Merton MillerI should mention that I am a member of the board of directors of Dimensional Fund Advisors.
Merton Miller... Any pension fund manager who doesn't have the vast majority-and I mean 70% or 80% of his or her portfolio-in passive investments is guilty of malfeasance, nonfeasance or some other kind of bad feasance!
Merton MillerIf there's 10,000 people looking at the stocks and trying to pick winners, one in 10,000 is going to score, by chance alone, a great coup, and that's all that's going on. It's a game, it's a chance operation, and people think they are doing something purposeful... but they're really not.
Merton MillerAs an economics undergraduate, I also worked on a part-time basis in Cambridge, Massachusetts, for a company that was advising customers about portfolio decisions, writing reports.
Merton MillerEveryone recognizes that's a joke because obviously the number and shape of the pieces doesn't affect the size of the pizza. And similarly, the stocks, bonds, warrants, etc., issued don't affect the aggregate value of the firm.
Merton Miller