How the Really Smart Money Invests
From Shawn Tulley – Fortune Magazine, July 6, 1998
Suppose you made a list of the smartest people alive in finance–those who have done the most to advance our understanding of how the stock market really works. Somewhere near the top you’d surely place Eugene Fama of the University of Chicago, the leading champion of the efficient-market theory and a favorite to win a Nobel Prize one day. You’d obviously want to include Merton Miller of Chicago, who earned a Nobel by analyzing the effect of a corporation’s capital structure on its stock price, and Myron Scholes of Stanford, who won his Nobel by explaining the pricing of options. You’d also pencil in Fama’s collaborator Kenneth French of MIT, as well as consultant Roger Ibbotson and master data cruncher Rex Sinquefield, who together compiled the most trusted record of stock market returns going back to 1926.