Eugene Fama

Date of Birth: February 14, 1939

Zodiac Sign: Aquarius

Biography

Eugene Fama, an American economist, is best known for his work on portfolio theory and asset pricing. Born in Boston, Massachusetts, he is often referred to as the “father of modern finance” due to his groundbreaking contributions to the development of the efficient-market hypothesis (EMH). Fama earned his bachelor’s degree from Tufts University in 1960 and later obtained his MBA and PhD from the University of Chicago Booth School of Business, where he has also spent the majority of his academic career. His research has significantly influenced the field of economics, particularly through his work on the Efficient Market Hypothesis, which suggests that asset prices reflect all available information. Fama has received numerous accolades throughout his illustrious career, including the Nobel Memorial Prize in Economic Sciences in 2013, which he shared with Robert Shiller and Lars Peter Hansen. His prolific contributions to academic literature and finance have made him a sought-after speaker and consultant in both academic and financial circles.

5 Interesting Facts about Eugene Fama

1. Eugene Fama was awarded the Nobel Memorial Prize in Economic Sciences in 2013.

2. He is known for developing the Efficient Market Hypothesis (EMH), which posits that financial markets are “informationally efficient.”

3. Fama’s research has been fundamental in the development and validation of index funds.

4. He has published over 100 articles in academic journals, making him one of the most prolific contributors to the field of finance.

5. Fama has served as a consultant for numerous financial institutions and government agencies.

5 Most Interesting Quotes from Eugene Fama

1. “In an efficient market, at any point in time, the actual price of a security will be a good estimate of its intrinsic value.”

2. “I take the market efficiency hypothesis to be the simple statement that security prices fully reflect all available information.”

3. “Diversification is your buddy.”

4. “The stock market is a device to transfer money from the impatient to the patient.”

5. “The only way to beat the market is to take risks, but they must be risks that are systematically rewarded.”

Highest Net Worth Achieved

Eugene Fama’s highest net worth is estimated to be around $1.3 million, primarily accumulated through his academic career, consulting engagements, and speaking fees.