Investing Ideas Simplified (by a Nobel prize winner)
Nobel laureate Eugene Fama explains why long-term investors should know the reasons they're investing, understand risk, and not focus on short-term ups and downs.
Written by Patryk Dyjecinski

IFA and Founder of Clara Wealth

Professor Fama is one of the world’s most influential financial minds, a Nobel prize winner and widely recognised as the ‘father of modern finance’. His research is well known in both the academic and investment communities. He is strongly identified with research on markets and the relationship between risk and return.

Despite the sophistication and complexity of his work, his ideas answer three simple and fundamental questions:

  • Why should you invest and how much risk should you take?
  • Why should you ignore the short term?
  • What is the upside of risk?

In the three short videos below, Professor Fama discusses these principles:

Why should you invest?
In this short video, Professor Fama explains two key steps to investing: knowing why you want to invest and understanding your tolerance for risk.

Why should you ignore the short term?
Professor Fama provides perspective for long-term investors on why they shouldn’t pay a lot of attention to short-term results.

What is the upside of risk?
Professor Fama discusses how financial markets work, what fuels innovation, and the upside and downside of risk.

These simple yet critical concepts are at the core of our investments and pensions advice process.
Please contact me at Clara Wealth Management at or on 0207 097 4968 if you want to find out more or have any comments.