We were very excited to hear on Tuesday that Professor Eugene Fama has been awarded a 2013 Nobel Prize for Economics, jointly with two other Professors, for his research in to financial markets and how assets such as equities are priced.
As clients benefiting from the MFP approach to investing you will know that we have long been supporters of academic research when it comes to investing our clients’ money. Professor Fama is accredited for changing investment market practice worldwide and encouraging the emergence of index-funds. He concluded from decades of research that it is basically impossible to predict stock market price movements and to beat the market.
Professor Fama’s ground breaking work on asset pricing and markets inspired the founding of Dimensional, the fund manager that many of you have experienced.
Please watch Professor Fama’s video talking about winning the Nobel Prize.