Junk bonds prove there's nothing magical in a Aaa bond rating.

If 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.

Junk bonds prove there's nothing magical in a Aaa bond rating.

I had some of the students in my finance class actually do some empirical work on capital structures, to see if we could find any obvious patterns in the data, but we couldn't see any.

What counts is what you do with your money, not where it came from.

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

Everyone 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.