Amazingly Quote by Merton Miller
“Of course. I favor passive investing for most investors, because markets are amazingly successful devices for incorporating information into stock prices.”
About This Quote
Source Book: The Theory of Corporate Finance, 1973
Investing passively works because markets efficiently reflect all known information in prices.
In simple terms: Passive investing works because markets price in information.
Key Takeaway
Use low‑cost index funds.
Themes
investing
efficiency
information
passive
markets
Mood
analytical
pragmatic
Type
financial
advisory
When to use this quote
- retirement planning
- portfolio construction
- long‑term wealth building
Key Concepts
Efficient market hypothesis
price discovery
Questions to Reflect On
- How do you assess market efficiency for a specific asset?
- When might active management add value?
A Different Perspective
Passive strategies may underperform in inefficient or niche markets.
