Able Quote by Paul Samuelson
“The debate can be put in the form of the question: Resolved, that the best of money managers cannot be demonstrated to be able to deliver the goods of superior portfolio-selection performance. Any jury that reviews the evidence, and there is a great deal of relevant evidence, must at least come out with the Scottish verdict: Superior investment performance is unproved.”
About This Quote
Source Paper: "The Theory of Investment Value", 1969
The best money managers cannot reliably prove superior performance; evidence shows no consistent outperformance.
In simple terms: Top managers don’t consistently beat the market.
Key Takeaway
Questionly that performance claims.
Themes
finance
investment
performance
evidence
skepticism
Mood
skeptical
analytical
Type
critical
explanatory
When to use this quote
- Portfolio evaluation
- fund selection
- client advisory
- regulatory review
Key Concepts
Efficient market hypothesis
selection bias
risk-adjusted returns
Questions to Reflect On
- How do you distinguish skill from luck?
- What metrics best capture true skill?
A Different Perspective
Performance may be due to luck rather than skill.
![“When the economy was going up, [Milton Friedman and I] both gave the same advice, and when the economy was going down, we gave the same advice. But in between he didn't change his advice at all.” quote by Paul Samuelson](https://sms4smile.com/quotes/img-quotes/0e0/paul-samuelson-9078_advice_when-the-economy-was-going-up-milton-fri_107897.jpg)
