Congratulations to Eugene Fama, who has been awarded the Nobel Prize in Economics along with Lars Peter Hansen and Robert Shiller.
Professor Fama, currently Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Booth School of Business is one of the founders of the Efficient Market Hypothesis, which holds that the prices of stocks and bonds reflect all available knowledge and information and, therefore, are rational and cannot be 'beaten'.
Professor Fama's work changed the way markets are viewed and forms one of the key tenets of the passive investing approach. Many commentators believe that the recent sub prime crisis could have been averted if efficient market hypothesis had been taken more seriously.
Congratulations to Professor Fama and his fellow Nobel Prize winners from all at sensibleinvesting.tv.
Please share this content using any of the share buttons below. Please see this page for guidelines on embedding videos and other content in your own website or online marketing.
Breaking with Bogle
Why are we so hooked on market forecasting? An interview with Morgan Housel
Why 2014 was a watershed year for the UK fund industry
Campaign for fairer investment industry hits a raw nerve
Media bias towards active funds has to stop
6 reasons why UK fund charges are a rip off
Welcome to the all-new sensibleinvesting.tv!
All change for pensions
Rise or fall – don’t let fear guide your investing behaviour
Can you afford to put all your eggs in one basket?
Reasons to be cheerful
Can you afford to retire?
Don't be misled by the closet trackers
Picking the winning team
Time for the City to take time out
The beginning of the end for over-charging?
What tornadoes can teach us about investing
Good news for auto-enrolment pensions
The war on hidden charges wins another battle - but it's still progressing too slowly
We need to defuse the pensions timebomb
Monkeys move in on the active vs. passive debate
Our best endorsement yet
Taking the long term view
Cash for corporate access
Dog days for fund managers
The top cat of stock-picking
Passive sense in exciting times
The Sensible Investing Awards 2012: this year's winners and losers
You're lucky to be so skillful
Aim for average
Indexing hits the headlines
Book review: The Investment Answer by Dan Goldie and Gordon Murray
Can you be passive and ethical too?