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

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.

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.

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.

To beat the market you’ll have to invest serious bucks to dig up information no one else has yet.

To beat the market you'll have to invest serious bucks to dig up information no one else has yet.

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

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.

... 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!

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