Quotes from Andrew W. Lo

A hedge fund is a private partnership that has a start and an end, and involves a general partner and several limited partners, each of whom brings something to the partnership. At the start, the general partner brings all the experience and limit partners bring all the money. At the end, the general partner leaves with all the money and the limited partners leave with all the experience.

the wisdom of crowds is sometimes overwhelmed by the madness of mobs.

The dividend discount model suggests that in an efficient market, the current price of a stock should equal the present value of all expected future dividends, assuming for the sake of simplicity that the investor has no intention of selling the stock. (The present value is sometimes called the discounted value, since the present value of an item is discounted from its value in the future.)