Quotes (308)

Greg Smith
(87) "Getting an unsophisticated client was the golden prize. The quickest way to make money on Wall Street is to take the most sophisticated product and try to sell it to the least sophisticated client."
21-Oct-12
- 60 Minutes, cbsnews.com, "Goldman Sachs VP explains why he quit"
Clark Truman
(216) "Investors acquiring commodity futures in expectations of higher returns, lower risk, and improved inflation protection are making bets. Current evidence indicates that the odds are against them."
- Former Professor of Finance, University of Southern California, Commodity Futures in Portfolios
J.P. Morgan's reply when asked what the stock market will do.
(326) "It will fluctuate."
Robert Arnott
(197) "In investing, what is comfortable is rarely profitable."
- Investment Manager
William Bernstein
(20) "The deeper one delves, the worse things look for actively managed funds."
2001
- The Intelligent Asset Allocator
(247) "Wall Street is littered with the bones of those who knew just what to do, but could not bring themselves to do it."
2009
- The Investor's Manifesto, Preparing for Prosperity, Armageddon, and Everything in Between
(248) "No one in his right mind would walk into the cockpit of an airplane and try to fly it, or into an operating theater and open a belly.  And yet they think nothing of managing their retirement assets.  I've done all three, and I'm here to tell you that managing money is, in its most critical elements (the quota of emotional discipline and quantitative ability required) even more demanding than the first two."
2008
John Bogle
(114) "If the data do not prove that indexing wins, well, the data are wrong."
2007
- The Little Book of Common Sense Investing, p. 28
(116) "Hint: money flows into most funds after good performance, and goes out when bad performance follows."
2007
- The Little Book of Common Sense Investing, p. 50
(123) "Surprise! The returns reported by mutual funds aren't actually earned by mutual fund investors."
2007
- The Little Book of Common Sense Investing
(125) "We need a mutual fund industry with both vision and values; a vision of fiduciary duty and shareholder service, and values rooted in the proven principles of long-term investing and of trusteeship that demands integrity in serving our clients."
2010
- Enough: True Measures of Money, Business, and Life
Warren Buffett, Chairman, Berkshire Hathaway
(220) "Most investors, both institutional and individual, will find that the best way to own common stocks (shares') is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) of the great majority of investment professionals."
1996
(224) "The American economy is going to do fine. But it won't do fine every year and every week and every month. I mean, if you don't believe that, forget about buying stocks anyway... It's a positive-sum game, long term. And the only way an investor can get killed is by high fees or by trying to outsmart the market."
2008
(231) "the active investors will have their returns diminished by a far greater percentage than will their inactive brethren. That means that the passive group – the "know-nothings" – must win."
2007
- 2007 Berkshire Hathaway Shareholder Letter
(236) "The best way in my view is to just buy a low-cost index fund and keep buying it regularly over time, because you'll be buying into a wonderful industry, which in effect is all of American industry...People ought to sit back and relax and keep accumulating over time."
7-May-07
James Davis
(100) "The results of this study are not good news for investors who purchase actively managed mutual funds. No investment style generates positive abnormal returns over the 1965-1998 sample period. The sample includes 4,686 funds covering 26,564 fund-years."
2001
- Mutual Fund Performance and Manger Style, Financial Analysts Journal 57 (2001): 19-27
Charles Ellis
(42) "There are three kinds of investment risk. Two can be virtually eliminated. The third, market risk, must be managed."
2001
- Winning the Loser's Game, 3rd edition
(325) "The long-term data repeatedly document that investors would benefit by switching from active performance investing to low-cost indexing."
July 1, 2014
- The Rise and Fall of Performance Investing, The Financial Analysts' Journal Vol. 70, No. 4, pp. 14-23
Eugene Fama
(73) "The distribution [of the market] is fat-tailed relative to the normal distribution…For passive investors, none of this matters, beyond being aware that outlier returns are more common than would be expected if return distributions were normal."
Mar-09
- Professor of Finance, University of Chicago Booth School of Business, Q&A: Confidence in the Bell Curve
(264) Active management is a zero-sum game before cost, and the winners have to win at the expense of the losers.
7-Oct-13
- InvestmentNews
(265) I can't figure out why anyone invests in active management, so asking me about hedge funds is just an extreme version of the same question. Since I think everything is appropriately priced, my advice would be to avoid high fees. So you can forget about hedge funds. [response to a question about where alternative investments belong in a portfolio strategy]
7-Oct-13
- InvestmentNews
Jon Fossel
(128) "People ought to recognize that the average fund can never outperform the market in total."
2007
- The Little Book of Common Sense Investing by John C. Bogle
Benjamin Graham, (1894-1976) Legendary American investor, scholar, teacher and co-author of the book, "Security Analysis"
(86) "The investor's chief problem - and even his worst enemy - is likely to be himself."
1934
- Graham, Benjamin, "Security Analysis," New York: McGraw-Hill Companies
(11) "The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored."
1949
(17) "The thing that I have been emphasizing in my own work for the last few years has been the group approach. To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company."
1976
Mark Hebner, Founder, Index Fund Advisors, Inc.  
(143) "Most people are beaten up by the market, instead of beating the market."
- President of Index Fund Advisors
Michael Hiltzik
(267) He [Burton Malkiel] should be dipped in gold an placed on a pedestal in from of the New York Stock Exchange, as a warning to investors that they can't profit from the brokerages' rigged game.
7-Oct-13
- Los Angeles Times
Davis James
(67) "The results of this study are not good news for investors who purchase actively managed mutual funds. No investment style generates positive abnormal returns over the 1965-1998 sample period. The sample includes 4,686 funds covering 26,564 fund-years."
2001
- Mutual Fund Performance and Manger Style, Financial Analysts Journal 57 (2001): 19-27
Clements Jonathan, Journalist
(48) "Most investors are pretty smart. Yet most investors also remain heavily invested in actively managed stock funds. This is puzzling. The temptation, of course, is to dismiss these folks as ignorant fools. But I suspect these folks know the odds are stacked against them, and yet they are more than happy to take their chances."
Feb. 27, 2001
Michael Lewis
(165) "Wall Street, with its army of brokers, analysts, and advisers funneling trillions of dollars into mutual funds, hedge funds, and private equity funds, is an elaborate fraud."
Dec-07
- Conde Nast Portfolio, The Evolution of an Investor, page 184
Peter Lynch
(183) "The S&P is up 343.8 percent for 10 years. That is a four-bagger. The general equity funds are up 283 percent. So it's getting worse, the deterioration by professionals is getting worse. The public would be better off in an index fund."
2007
- The Little Book of Common Sense Investing by John C. Bogle
(184) "Most investors would be better off in an index fund."
1990
- Barron's, p. 15, April 2, 1990
Burton Malkiel
(28) "Index funds have regularly produced rates of return exceeding those of active managers by close to 2 percentage points. Active management as a whole cannot achieve gross returns exceeding the market as a while and therefore they must, on average, underperform the indexes by the amount of these expense and transaction costs disadvantages."
2007
(35) "It's not that stock prices are capricious. It's that the news is capricious."
- A Random Walk Down Wall Street
Bill Miller
(25) "It seemed like we needed a 12-step program to cure us of our addiction to buying beaten-up stocks..."
- Chairman and Chief Investment Officer of Legg Mason Capital Management, second-quarter update letter to shareholders
Merton Miller, Nobel Laureate and Professor of Economics, Univ. of Chicago
(160) "Everybody has some information. The function of the markets is to aggregate that information, evaluate it and get it incorporated into prices."
1997
- Investment Gurus by Peter J. Tanous, New York Institute of Finance
Peter Robison, Asjylyn Loder, and Alan Bjerga
(187) "Just as they did with subprime mortgage-backed securities, Wall Street banks are transferring wealth from their clients to their trading desks."
22-Jul-10
- Amber Waves of Pain, Bloomberg Businessweek
Paul Samuelson, Nobel Laureate
(177) "Even fans of actively managed funds often concede that most other investors would be better off in index funds. But buoyed by abundant self-confidence, these folks aren't about to give up on actively managed funds themselves. A tad delusional? I think so. Picking the best-performing funds is 'like trying to predict the dice before you roll them down the craps table,' says an investment adviser in Boca Raton, FL. 'I can't do it. The public can't do it.'"
2007
(178) "Still, I figure we shouldn't' discourage fans of actively managed funds. With all their buying and selling, active investors ensure the market is reasonably efficient. That makes it possible for the rest of us to do the sensible thing, which is to index. Want to join me in this parasitic behavior? To build a well-diversified portfolio, you might stash 70 percent of your stock portfolio into a (Dow Jones) Wilshire 5000-index fund and the remaining 30 percent in an international-index fund."
2007
(270) "There is something in people; you might even call it a little bit of a gambling instinct… I tell people investing should be dull. It shouldn't be exciting. Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas."
1999
- "The Ultimate Guide to Indexing," Bloomberg Personal Finance
Charles Schwab
(321) Nobody wants to be passive; indexing is not passive — much more goes into indexing than watching a stock become the next buggy whip.
May 22, 2014
- Thinkadvisor.com, "Schwab Founder: Indexing Is Not Passive", 5/22/14
(322) The word passive does a disservice to investors considering their options. Indexing provides an effective means of owning the market and allows investors to participate in the returns of a basket of stocks. The basket of stocks changes over time as stocks are added or removed based on its rules.
May 22, 2014
- Thinkadvisor.com, "Schwab Founder: Indexing Is Not Passive", 5/22/14
(43) "Most of the mutual fund investments I have are index funds, approximately 75%."
2000
- Guide to Financial Independence, p. 90
(44) "It's fun to play around...it's human nature to try to select the right horse...(But) for the average person, I'm more of an indexer...The predictability is so high...For 10, 15, 20 years you'll be in the 85th percentile of performance. Why would you screw it up?"
2007
William Sharpe, Nobel Laureate in Economics, 1990
(255) "Properly measured, the average actively managed dollar must underperform the average passively managed dollar, net of costs. Empirical analyses that appear to refute this principle are guilty of improper measurement."
January/February 1991
- The Arithmetic of Active Management, The Financial Analysts' Journal Vol. 47, No. 1,. pp. 7-9
Rex Sinquefield
(191) "So who still believes markets don't work? Apparently it is only the North Koreans, the Cubans and the active managers."
- Co-founder and board member, Dimensional Fund Advisors
(192) "Forty years later [after the establishment of the first index fund], index funds remain the best wealth management choice for all investors"
5-Sep-13
- 40 Years Later, Index Funds Remain The Best Wealth Management Choice For All Investors, Forbes.com
David Swensen, chief investment officer, Yale University Endowment Fund
(62) "Unless an investor has access to 'incredibly high-qualified professionals,' they should be 100 percent passive -- that includes almost all individual investors and most institutional investors."
31-Jan-12
- John C. Bogle Legacy Forum, Bloomberg
The Ambachtsheer Letter
(213) "Rather than making money, 240 pension funds lost about 0.5% per year on average, over the last five years through their active management activities."
Sept. 28, 1998
- The Ambachtsheer Letter
Charles Trzcinka, Professor of Finance, Indiana University & Jason Zwieg, Columnist
(45) "The sheer magnitude of the difference we discovered between the total returns earned by funds and the results captured by the average shareholder is shocking and tragic." [Funds = 5.7%, Investors = 1%]
2002
- What Fund Investors Really Need to Know, by Jazon Zweig Money Magazine, June 2002. (see 1.3.3)
Jason Zweig
(102) "The neural activity of someone whose investments are making money is indistinguishable from that of someone who is high on cocaine or morphine."
2007
- Your Money & Your Brain
John Bogle
(278) But whatever the consensus on the EMH, I know of no serious academic, professional money manager, trained security analyst, or intelligent individual investor who would disagree with the thrust of EMH:  The stock market itself is a demanding taskmaster.  It sets a high hurdle that few investors can leap. 
13-Apr-04
- Bogle Financial Markets Research Center
(279) While the apostles of the new so-called “behavioral” theory present ample evidence of how often human beings make irrational financial decisions, it remains to be seen whether these decisions lead to predictable errors that create systematic mispricings upon which rational investors can readily (and economically) capitalize.
13-Apr-04
- Bogle Financial Markets Research Center
Nils Bohr, Nobel laureate in Physics
(172) "Prediction is very difficult, especially if it's about the future."
Eugene Fama
(289) The efficient market theory is one of the better models in the sense that it can be taken as true for every purpose I can think of. For investment purposes, there are very few investors that shouldn't behave as if markets are totally efficient.
1-Oct-13
- ChicagoBooth Magazine, Fall 2013.
Mark Hebner, Founder, Index Fund Advisors, Inc.  
(146) "Efficient markets have no trends, so any speculation using trading systems or active investment strategies, such as stock, time, manager, or style selection, will only detract from future market returns."
- President of Index Fund Advisors
Victor Hugo, French Poet (1802-1885)
(219) "One can resist the invasion of armies, but not the invasion of ideas."
1880
Daniel Kahneman, Nobel Laureate in Economics, 2002
(53) Q. So investors shouldn't delude themselves about beating the market? A. "They're just not going to do it. It's just not going to happen."
January 2, 2002
- Investors Can't Beat Market
John Langbein, Chancellor Kent Professor of Law and Legal History at Yale University Law School Reporter
(134) "A Copernican Revolution . . .the most fundamental thing that has happened to the investment process - the development of Modern Portfolio Theory, the Theory of Efficient Markets, the scientific understanding of risk/return relationships and the importance of diversification in portfolios"
-
Harry Markowitz, Father of Modern Portfolio Theory and recipient of the 1989 John von Neumann Theory Prize
(272) "We next consider the rule that the investor does [or should] consider expected return a desirable thing and variance of return an undesirable thing."
1952
- "Portfolio Selection"
Marquis de Laplace, Theorie Analytique des Probabilites
(150) "It is remarkable that a science which began with the consideration of games of chance should have become the most important object of human knowledge."
1812
- Lady Luck, the theory of probability by Warren Weaver
Merton Miller, Nobel Laureate and Professor of Economics, Univ. of Chicago
(273) "...Any pension fund manager who doesn't have the vast majority—and I mean 70% or 80% of his or her portfolio—in passive investments is guilty of malfeasance, nonfeasance or some other kind of bad feasance!"
February 1997
- "Investment Gurus," Peter Tanous
Paul Samuelson, Nobel Laureate
(181) "This message (that attempting to beat the market is futile) can never be sold on Wall Street because it is in effect telling stock analysts to drop dead."
(205) "It is not easy to get rich in Las Vegas, at Churchill Downs or at the local Merrill Lynch office."
1970
(327) "Even if this advice [to portfolio decision makers] to drop dead is good advice, it obviously is not counsel that will be eagerly followed. Few people will commit suicide without a push. And fewer still will pay good money to be told to do what is against human nature and self-interest to do."
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
(328) "Perhaps there really are managers who can outperform the market consistently - logic would suggest that they exist. But they are remarkably well-hidden"
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
(329) "The debate can be put in the form of the question: Resolved, that the best of money managers cannot be demonstrated to be able to deliver the goods of superior portfolio-selection performance. Any jury that reviews the evidence, and there is a great deal of relevant evidence, must at least come out with the Scottish verdict: Superior investment performance is unproved."
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
(330) "Anyone with special abilities earns a differential return on that flair, which we economists call a rent. Those few with extraordinary P.Q. (Performance Quotient) will not give away such rent to the Ford Foundation or the local bank trust department. They have too high an I.Q. for that."
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
(331) "The sad truth is that it is precisely those who disagree most with the hypothesis of efficient market pricing of stocks, those who pooh-pooh beta analysis and all that, who are least able to understand the analysis needed to test that hypothesis."
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
(332) "First, they [those who disagree with market efficiency] simply assert that it stands to common sense that greater effort to get facts and greater acumen in analyzing those facts will pay off in better performance somehow measured. (By this logic, cure for cancer must have been found by 1955)."
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
(333) "Second, they [those who disagree with market efficiency] always claim they know a man, a bank, or a fund that does do better. Alas, anecdotes are not science. And once Wharton School dissertations seek to quantify the performers, these have a tendency to evaporate into the air - or, at least, into statistically insignificant t-statistics."
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
Anonymous
(275) "By day we write about 'Six Funds to Buy NOW!'... By night we invest in sensible index funds. Unfortunately, pro-index fund stories don't sell magazines."
1999
- Fortune Magazine
Peter Bernstein
(19) "The difference between luck and skill is seldom apparent at first glance."
1996
- Capital Ideas, The Improbable Origins of Modern Wall Street
William Bernstein
(21) "It's human nature to find patterns where there are none and to find skill where luck is a more likely explanation (particularly if you're the lucky [mutual fund] manager)." Mutual fund manager performance does not persist and the return of stock picking is zero."
2001
(22) "99% of fund managers demonstrate no evidence of skill whatsoever."
2001
- The Intelligent Asset Allocator
(249) "When it comes to fund managers and market strategists, this year's hero usually turns into next year's zero."
2009
- The Investor's Manifesto: Preparing for Prosperity, Armageddon and Everything In Between
John Bogle
(115) "It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it."
2007
- The Little Book of Common Sense Investing
(118) "If your fund doesn't last for the long term, how can you invest for the long term?" "Note: over 36 years, 80% of the original 355 funds went out of existence."
2007
- The Little Book of Common Sense Investing p. 79-80
Warren Buffett, Chairman, Berkshire Hathaway
(222) "Buy a cross section of American industry, and if a cross section of American industry doesn't work, certainly trying to pick the little beauties here and there isn't going to work either."
April 14, 2008
- Fortune Magazine, "What Warren Thinks..."
(223) "Investors...can't pick stocks that are better than average. Stocks are a good thing to own over time. There's only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them."
2008
Steven Cohen, Founder of Hedge Fund SAC Capital Advisors
(209) "It's hard to find ideas that aren't picked over and harder to get real returns and differentiate yourself. We are entering a new environment. The days of big returns are gone."
16-Sep-06
- The Hedge Fund King is Getting Nervous, The Wall Street Journal
Jim Cramer
(98) "After a lifetime of picking stocks, I have to admit that Bogle's arguments in favor of the index fund have me thinking of joining him rather than trying to beat him. Bogle's wisdom and common sense [are] indispensable...for anyone trying to figure out how to invest in this crazy stock market."
2007
Joel Dickson
(109) "Mutual funds have failed to manage their realized capital gains in such a way as to permit a substantial deferral of taxes (raising) investors' tax bills considerably ....If the Vanguard 500 Index fund could have deferred all of its realized capital gains, it would have ended up in the 91.8 percentile for the high tax investor" [i.e., it outpaced 92 percent of all managed equity funds]."
2007
Richard Ennis
(195) 11. [There is] "no support for the claim that active management of small-cap portfolios is more fruitful than it is for large-cap portfolios."
Sept. 2001
- The Small-Cap-Alpha Myth
Eugene Fama Jr.
(77) "After taking risk into account, do more managers than you'd see by chance outperform with persistence? Virtually every economist who studied this question answers with a resounding "no." Mike Jensen in the Sixties and Mark Carhart in the Nineties both conducted exhaustive studies of professional investors. They each conclude that in general, a manager's fee, and not his skill, plays the biggest role in performance."
2001
Bill Gross
(24) "When you're underperforming the index, you go home at night and cry in your beer," he said, adding: "It's not fun, but who said this business should be fun. We're too well paid to hang our heads and say boo hoo."
August 29, 2011
- Dan McCrum, Pimco's Gross rues US debt 'mistake', Financial Times
Mark Hebner, Founder, Index Fund Advisors, Inc.  
(94) "The only way to "beat an index" is to invest in something other than the index. Why would you, when the only source of long-term risk and return data is the index?"
-
Holman Jenkins, Jr.
(95) "Will customers keep supporting the enormous overhead required to sustain ineffectual, unproductive stock picking across an array of thousands of individual funds devoted to every investing 'style' and economic sector or regional subgroup that some marketing idiot can dream up? Not likely. A brutal shakeout is coming and one of its revelations will be that stock picking is a grossly overrated piece of the puzzle, that cost control is what distinguishes a competitive firm from an uncompetitive one."
2007
Michael Jensen, Ph.D.
(276) "Very little evidence [was found] that any individual [mutual] fund was able to do significantly better than that which we expected from mere random chance."
1968
- “The Performance of Mutual Funds in the Period 1945-1964,” Journal of Finance
Daniel Kahneman, Nobel Laureate in Economics, 2002
(314) Mutual funds are run by highly experienced and hard working professionals who buy and sell stocks to achieve the best possible results for their clients. Nevertheless, the evidence from more than fifty years of research is conclusive: for a large majority of fund managers, the selection of stocks is more like rolling dice than like playing poker.
October 25, 2011
- Thinking, Fast and Slow by Daniel Kahneman, page 214
(315) There is general agreement among researchers that nearly all stock pickers, whether they know it or not-and few of them do-are playing a game of chance.
October 25, 2011
- Thinking, Fast and Slow by Daniel Kahneman, page 214
(316) Unfortunately, skill in evaluating the business prospects of a firm is not sufficient for successful stock trading, where the key question is whether the information about the firm is already incorporated in the price of the stock.  Traders apparently lackthe skill to answer this crucial question, but they appear to be ignorant of their ignorance.
October 25, 2011
- Thinking, Fast and Slow by Daniel Kahneman, page 216
(317) Finally, the illusions of validity and skill are supported by a powerful professional culture. We know that people can maintain an unshakeable faith in any proposition, however absurd, when they are sustained by a community of like-minded believers. Given the professional culture of the financial community, it is not surprising that large numbers of individuals in that world believe themselves to be among the chosen few who can do what they believe others cannot.
October 25, 2011
- Thinking, Fast and Slow by Daniel Kahneman, page 217
(318) You should expect little or nothing from Wall Street stock pickers who hope to be more accurate than the market in predicting the future of prices. And you should not expect much from pundits making long-term forecasts.
October 25, 2011
- Thinking, Fast and Slow by Daniel Kahneman, page 220
(319) Knowing the importance of luck, you should be particularly suspicious when highly consistent patterns emerge from the comparison of successful and less successful firms. In the presence of randomness, regular patterns can only be mirages.
October 25, 2011
- Thinking, Fast and Slow by Daniel Kahneman, page 204
(320) The illusion of skill is not only an individual aberration: it is deeply ingrained in the culture of the industry. Facts that challenge such basic assumptions-and thereby threaten people’s livelihood and self-esteem-are simply not absorbed.
October 25, 2011
- Thinking, Fast and Slow by Daniel Kahneman, page 216
Michael Lewis
(166) "Nobody knows which company will prove a good long-term investment. Even Buffett's genius lies more in running businesses than in picking stocks. But in the investing world, that is ignored. Wall Street, with its army of brokers, analysts, and advisers funneling trillions of dollars into mutual funds, hedge funds and private equity funds, is an elaborate fraud."
Dec-07
Peter Magurean III
(186) "Having been an idealistic young sales-oriented fellow I became a licensed stockbroker for one of Wall Street's most prestigious firms in the late 60s. I learned very quickly that to succeed I had to "sell my soul", and to be more than moderately successful I had to follow the boss' program and to sell exactly what the boss wants sold - - it was "the hell with the client". ... kudos for having the intestinal fortitude at PORTFOLIO [magazine] to speak out about the 'sacred cows' that graze along Wall Street!"
Nov. 20, 2007
Harry Markowitz, Father of Modern Portfolio Theory and recipient of the 1989 John von Neumann Theory Prize
(277) "It's like a crapshoot in Las Vegas, except in Las Vegas the odds are with the house. As for the market, the odds are with you, because on average over the long run, the market has paid off."
July 1996
- "Risk Management: Improving your Odds in the Crapshoot" from Bloomberg Personal
Merton Miller, Nobel Laureate and Professor of Economics, Univ. of Chicago
(159) "If there's 10,000 people looking at the stocks and trying to pick winners, one in 10,000 is going to score, by chance alone, a great coup, and that's all that's going on. It's a game, it's a chance operation, and people think they are doing something purposeful...but they're really not."
(169) "If there's 10,000 people looking at the stocks and trying to pick winners, one in 10,000 is going to score, by chance alone, a great coup, and that's all that's going on. It's a game, it's a chance operation, and people think they are doing something purposeful... but they're really not."
2000
Dunn Patricia, CEO, Barclays Global Advisors
(68) "Investment managers sell for the price of a Picasso [what] routinely turns out to be paint-by-number sofa art."
2001
- CEO of world's largest money management firm, approx $1 trillion of assets under management, approx 80% indexed)
David Rolfe
(58) "By 1972, at the Company's then peak operating level, a single original Graham-Newman share of $27 had grown in worth to $16,349... Graham-Newman's original 1948 investment of $712,000 was worth over $400,000,000 25 years later... The gain in GEICO would come to represent a much larger percentage of the firm's profits than its other investments combined."
2013
Ron Ross, Ph.D.
(274) "Active management is little more than a gigantic con game."
2002
- The Unbeatable Market
Paul Samuelson, Nobel Laureate
(176) "Forsake search for needles that are so very small in haystacks that are so very large."
1989
- Samuelson, Paul. "The Judgment of Economic Science on Rational Portfolio Management Indexing, Timing, and Long–Horizon Effects." The Journal of Portfolio Management 16, no. 1 (Fall 1989): 4-12.
Fred Schwed, Jr.
(206) "Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little."
1940
- Where Are The Customer's Yachts?
Meir Statman, Professor of Finance, Santa Clara University and author of What Investors Really Want
(156) "The house [casino] takes a cut on each spin of the wheel, paying out less in winnings than it collects in bets. So roulette is a negative-sum game, and so is your non-index mutual fund [actively managed fund]."
29-May-01
- Odds say you can't beat index funds, MoneyCentral Investing
(158) "Practically speaking, individual investors should treat the market as unbeatable and realize that when they try to beat it because it is inefficient, they are likely to injure themselves, rather than gain at the expense of another."
2010
- SF Gate.com article titled, "Meir Statman: Amateur investors expect impossible" 11/16/2010
Robert Stovall, Investment Manager
(210) "It's just not true that you can't beat the market. Every year about one-third of the fund managers do it. Of course, each year it is a different group."
1992  
- ABC 20/20 Interview "Who Needs the Experts"
David Swensen, chief investment officer, Yale University Endowment Fund
(59) "A minuscule 4 percent of funds produce market-beating after-tax results with a scant 0.6 percent (annual) margin of gain. The 96 percent of funds that fail to meet or beat the Vanguard 500 Index Fund lose by a wealth-destroying margin of 4.8 percent per annum."
2007
(61) "The simple index fund solution has been adopted as a cornerstone of investment strategy for many of the nation's pension plans operated by our giant corporations and state and local governments. Indexing is also the predominant strategy for the largest of them all, the retirement plan for federal government employees, the Federal Thrift Savings Plan (TSP). The plan has been a remarkable success, and now holds some $173 billion of assets for the benefit of our public servants and members of armed services."
2007
(66) "The simple index fund solution has been adopted as a cornerstone of investment strategy for many of the nation's pension plans operated by our giant corporations and state and local governments. Indexing is also the predominant strategy for the largest of them all, the retirement plan for federal government employees, the Federal Thrift Savings Plan (TSP). The plan has been a remarkable success, and now holds some $173 billion of assets for the benefit of our public servants and members of armed services."
2007
Arthur Cashin, CNBC Commentary
(9) "The market is like watching a drunk walk a tight rope. You never know what's going to happen next."
November 21, 2003
- CNBC Television
Harry Banks
(89) "The illusions of hope are apt to close one's eyes to the painful truth."
William Bernstein
(23) "There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor - the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know."
2001
Zvi Bodie
(307) "Statistical research has shown that, to a close approximation, stock prices seem to follow a random walk with no discernible predictable patterns that investors can exploit. Such findings are now taken to be evidence of market efficiency... Only new information will move stock prices..."
2004
- Investments
Warren Buffett, Chairman, Berkshire Hathaway
(221) "If you knew what was going to happen in the economy, you still wouldn't necessarily know what was going to happen in the stock market."
April 14, 2008
- Fortune Magazine, "What Warren Thinks..."
(225) "Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful."
2004
- 2004 Annual Report of Berkshire Hathaway
(226) "Inactivity strikes us as intelligent behavior."
1996
- 1996 Annual Report of Berkshire Hathaway
(227) "Our favorite holding period is forever."
1988
- 1988 Annual Report of Berkshire Hathaway
(228) "The only value of stock forecasters is to make fortune-tellers look good."
1992
- 1992 Annual Report of Berkshire Hathaway
(229) "We continue to make more money when snoring than when active."
1996
- 1996 Annual Report of Berkshire Hathaway
(230) "Our stay-put behavior reflects our view that the stock market serves as a relocation center at which money is moved from the active to the patient."
1991
- 1991 Annual Report of Berkshire Hathaway
(237) "Our system works. Over time, people will live better and better. We have a system that unleashes human potential, and now China has a system that unleashes human potential. We will have interruptions. We overshoot and undershoot sometimes, but your kids and grandkids will live better than you. Over time, we move ahead at a pretty damn rapid rate."
2009
(323) "With a wonderful business, you can figure out what will happen; you can't figure out when it will happen. You don't want to focus on when, you want to focus on what. If you're right about what, you don't have to worry about when."
January 2014
- The Motley Fool, Warren Buffett Tells You How to Turn $40 Into $10 Million
(324) "If you're right about the business, you'll make a lot of money... it's far better to buy a wonderful company at a fair price."
January 2014
- Motley Fool, Warren Buffett Tells You How to Turn $40 Into $10 Million
Charles Ellis
(71) "Market Timing is a wicked idea.  Don't try it --- ever."
1985, 1999
- Winning the Loser's Game
(297) "Market timing is a wicked idea. Don't try it — ever."
2002
- Winning the Loser's Game
Eugene Fama
(266) I don't think the Fed[eral Reserve] has any role in how high rates are right now. I don't understand why everyone is paying attention to this tapering. The Fed is using one kind of bond to buy another kind of bond. What's the big deal, and why is anyone taking the Fed seriously?
7-Oct-13
- InvestmentNews
Edgar Fiedler
(70) "He who lives by the crystal ball soon learns to eat ground glass."
Jun-77
- The Three Rs of Economic Forecasting-Irrational, Irrelevant and Irreverent
James Glassman, Co-Author of Dow 36,000
(99) "IN THE STOCK MARKET (as in much of life), the beginning of wisdom is admitting your ignorance. One of the many things you cannot know about stocks is exactly when they will up or go down. Over the long term, stocks generally rise at a nice pace. History shows they double in value every seven years or so. But in the short term, stocks are just plain wild. Over periods of days, weeks and months, no one has any idea what they will do. Still, nearly all investors think they are smart enough to divine such short-term movements. This hubris frequently gets them into trouble."
11/12/2001
Benjamin Graham, (1894-1976) Legendary American investor, scholar, teacher and co-author of the book, "Security Analysis"
(15) "The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored."
1949
(18) "It is absurd to think that the general public can ever make money out of market forecasts."
1949
- The Intelligent Investor
(1) "If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting what`s going to happen to the stock market."
March 1976
- Interview with Hartman L. Butler, "An Hour with Mr. Graham"
Mark Hulbert
(141) "These results add up to perhaps the most important investment lesson of all that can be drawn from this week's market anniversaries: Predicting turns in the market is incredibly difficult to do consistently well. That means that, if your investment strategy going forward is dependent on your anticipating major market turning points, your chances of success are extremely low."
10-Mar-10
Michael Jensen, Ph.D.
(161) "There is no other proposition in economics that has more solid empirical evidence supporting it than the Efficient Market Hypothesis...In the literature of finance, accounting, and the economics of uncertainty, the EMH is accepted as a fact of life."
1978
- "Some Anomalous Evidence Regarding Market Efficiency," Journal of Financial Economics
Martin Luther King, Jr.
(152) "The time is always right to do the right thing."
Sept. 2007
- Money Magazine
Jeffrey Laderman
(104) "Hulbert's conclusion: None of the newsletter timers beat the market [over a ten year period]. The average return was 11.06%. During the same period, Standard & Poor's 500-stock index earned 18.06% annually..."
9-Mar-98
- "Market Timing: A Perilous Ploy", Business Week
Burton Malkiel
(33) "Why does indexing outmaneuver the best minds on Wall Street? Paradoxically, it is because the best and brightest in the financial community have made the stock market very efficient. When information arises about individual stocks or the market as a whole, it gets reflected in stock prices without delay, making one stock as reasonably priced as another. Active managers who frequently shift from security to security actually detract from performance [compared to an index fund] by incurring transaction costs."
24-May-99
Paul Samuelson, Nobel Laureate
(174) "But a respect for evidence compels me to incline toward the hypothesis that most portfolio decision makers should go out of business - take up plumbing, teach Greek, or help produce the annual GNP by serving as corporate executives."
1974
- "Challenge to Judgement" The Journal of Portfolio Management, Fall 1974, p. 17-19
Lao Tzu, 6th Century BC Chinese Poet
(135) "Those who have knowledge, don't predict. Those who predict, don't have knowledge. "
Yoda, by George Lucas
(257) "Impossible to see, the future is."
5-Sep-01
2002 Mutual Funds Guide
(4) "Most fund managers don't beat the S&P 500. Or if they do, very few can keep doing it for long spells. When bear markets wreak their periodic havoc, even fewer funds remain moneymakers."
2/4/2002
- Forbes Magazine
John Bogle
(111) "Fund investors are confident that they can easily select superior fund managers. They are wrong."
2007
- The Little Book of Common Sense Investing
(119) "If the data do not prove that indexing wins, well, the data are wrong."
2007
- The Little Book of Common Sense Investing, p. 28
Jonathan Clements
(129) "Santa Claus and the Easter Bunny should take a few pointers from the mutual-fund industry [and it's fund managers]. All three are trying to pull off elaborate hoaxes. But while Santa and the bunny suffer the derision of eight year olds everywhere, actively-managed stock funds still have an ardent following among otherwise clear-thinking adults. This continued loyalty amazes me. Reams of statistics prove that most of the fund industry's stock pickers fail to beat the market. For instance, over the 10 years through 2001, U.S. stock funds returned 12.4% a year, vs. 12.9% for the Standard & Poor's 500 stock index."
15-Sep-02
Peter Cohan
(182) "Why didn't I just throw my money out of the window - and light it on fire?"
Dec. 10, 2008
- As quoted in "The Stock Picker's Defeat," The Wall Street Journal. Article written by Tom Lauricella
Control, magazine
(3) "It is often said there are two types of forecasts ... lucky or wrong!!!!"
- published by Institute of Operations Management
Jonathon Davis, columnist for London's "The Spectator"
(130) "Nothing highlights better the continuing gap between rhetoric and substance in British financial services than the failure of providers here to emulate Jack Bogle's index fund success in the United States. Every professional in the City knows that index funds should be core building blocks in any long-term investor's portfolio. Since 1976, the Vanguard index funds has produced a compound annual return of 12 percent, better than three-quarters of its peer group. Yet, even 30 years on, ignorance and professional omerta still stand in the way of more investors enjoying the fruits of this unsung hero of the investment world."
2007
Charles Ellis
(36) "Contrary to their oft articulated goal of outperforming the market averages, investment managers are not beating the market; the market is beating them."
July-Aug 1975
- "The Loser's Game," as quoted in the Financial Analysts Journal
(38) "The real purpose of investment management is not to 'beat the market,' but to do what is really right for a particular client. And making sure the manager concentrates on achieving that objective is, by default, the responsibility of the client."
1985
- Winning the Loser's Game
Eugene Fama
(290) Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That's what people should be concerned with in their investment decisions and not with whether they can pick stocks, pick winners and losers among the various managers delivering basically the same product.
1-Oct-13
- ChicagoBooth Magazine, Fall 2013.
(286) People would be a lot more skeptical if they understood that there is an incredible amount of chance in the results that you observe for active managers. The distribution of outcomes is enormously wide--but that's exactly what you'd expect by chance with lots of active managers who hold imperfectly diversified portfolios. The really good portfolios contain a lot of really lucky picks, and the really bad portfolios contain a lot of really unlucky picks as well as some really bad ones.
1-Oct-13
- ChicagoBooth Magazine, Fall 2013.
Eddie Haskel, Leave it to Beaver
(69) "Gee Beav, those stock pickers and market timers really do add value to your portfolio."
circa 1965
- "Tall Tales"
Robert Huebscher
(269) Those institutions [state pension plans and endowments of state universities] are placing risky bets on private equity and similar funds, to some degree at the taxpayer's expense. They are relying on consultants who, on average, add no value and no prospect of delivering alpha. Taxpayers would be better served if public institutions adopted a low-cost index-based approach to endowment management.
8-Oct-13
- Advisor Perspectives
Howard Jones
(268) It's a waste of money listening to [investment] consultants. It's a serice that is useless.
1-Oct-13
- New York Times
Daniel Kahneman, Nobel Laureate in Economics, 2002
(52) "I don't try to be clever at all. The idea that I could see what no one else can is an illusion."
2007
- The Little Book of Common Sense Investing by John C. Bogle
Michael Lewis
(167) "A vast industry of stockbrokers, financial planners, and investment advisers skims a fortune for themselves off the top in exchange for passing their clients' money on to people who, as a whole, cannot possibly outperform the market."
Dec-07
- "The Evolution of an Investor," Conde Naste Portfolio
Peter Lynch
(185) "All the time and effort people devote to picking the right fund, the hot hand, the great manager have, in most cases, led to no advantage." and "Most individual investors would be better off in an index mutual fund."
2-Apr-90
- Barron's, p. 15
Burton Malkiel
(294) "I have become increasingly convinced that the past records of mutual fund managers are essentially worthless in predicting future success. The few examples of consistently superior performance occur no more frequently than can be expected by chance."
1973
- A Random Walk Down Wall Street
(29) "Experience conclusively shows that index-fund buyers are likely to obtain results exceeding those of the typical fund manager, whose large advisory fees and substantial portfolio turnover tend to reduce investment yields. Many people will find the guarantee of playing the stock-market game at par every round a very attractive one. The index fund is a sensible, serviceable method for obtaining the market's rate of return with absolutely no effort and minimal expense."
2007
(31) "We conclude that hedge funds are far riskier and provide much lower returns than is commonly supposed."
- "Hedge Funds: Risk and Return"Financial Analysts Journal November / Dec
(34) "It's like giving up a belief in Santa Claus."
- 20-20 Interview with John Stossel
Bethany McLean
(155) "... skepticism about past returns is crucial. The truth is, much as you may wish you could know which funds will be hot, you can't -- and neither can the legions of advisers and publications that claim they can. That's why building a portfolio around index funds isn't really settling for average. It's just refusing to believe in magic." 
1999
Jack Meyer
(96) "The investment business is a giant scam. Most people think they can find managers who can outperform, but most people are wrong. I will say that 85 to 90 percent of managers fail to match their benchmarks. Because managers have fees and incur transaction costs, you know that in the aggregate they are deleting value."
2007
Nassim Nicholas Taleb
(170) "The number of managers with great track records in a given market depends far more on the number of people who started in the investment business (in place of going to dental school), rather than on their ability to produce profits."
2007
- The Little Book of Common Sense Investing by John C. Bogle
(171) "Toss a coin; heads and the manager will make $10,000 over the year, tails and he will lose $10,000. We run [the contest] for the first year [for 10,000 managers]. At the end of the year, we expect 5,000 managers to be up $10,000 each, and 5,000 to be down $10,000. Now we run the game a second year. Again, we can expect 2,500 managers to be up two years in a row; another year, 1,250; a fourth one, 625; a fifth, 313. We have now, simply in a fair game, 313 managers who made money for five years in a row. [And in 10 years, just 10 of the original 10,000 managers.] Out of pure luck... A population entirely composed of bad managers will produce a small amount of great track records.... "
2001
Professor Richard Thaler, University of Chicago
(188) "People exaggerate their own skills. They are overoptimistic about their prospects and overconfident about their guesses, including which [investment] managers to pick."
2001
- Investment Titans, by Jonathan Burton, McGraw-Hill
Ron Ross, Ph.D.
(295) "Wall Street's favorite scam is pretending that luck is skill."
2002
- The Unbeatable Market
Paul Samuelson, Nobel Laureate
(179) "In every mutual fund prospectus, in every sales promotional folder, and in every mutual fund advertisement (albeit in print almost too small to read), the following warning appears: "Past performance is no guarantee of future results." Believe it!"
2007
- The Little Book of Common Sense Investing by John C. Bogle
Fred Schwed, Jr.
(79) "Once in the dear dead days beyond recall, an out-of-town visitor was being shown the wonders of the New York financial district. When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor. He said, ‘Look, those are the bankers' and brokers' yachts.' ‘Where are the customers' yachts?' asked the naive visitor."
1940
Robert Soros
(200) "Wall Street is a place where whatever can be sold will be sold. You are the consumer of their dreck. What they can sell to you, they will sell to you."
May-09
- quoted by Jeffrey Goldberg, Why I Fired My Broker, The Atlantic
David Swensen, chief investment officer, Yale University Endowment Fund
(65) "A miniscule 4 percent of funds produce market-beating after-tax results with a scant 0.6 percent (annual) margin of gain. The 96 percent of funds that fail to meet or beat the Vanguard 500 Index Fund lose by a wealth-destroying margin of 4.8% per annum."
2007
- John C. Bogle, The Little Book on Common Sense Investing
(56) "Millions of mutual-fund investors sleep well at night, serene in the belief that superior outcomes result from pooling funds with like-minded investors and engaging high-quality investment managers to provide professional insight. The conventional wisdom ends up hopelessly unwise, as evidence shows an overwhelming rate of failure by mutual funds to deliver on promises."
August 2005
The Economist, July 3, 2003, "The Blame Game"
(2) "You will almost never find a fund manager who can repeatedly beat the market. It is better to invest in an indexed fund that promises a market return but with significantly lower fees."
2007
- John C. Bogle, The Little Book on Common Sense Investing
The Financial Press
(214) "The $50 billion allegedly lost to investors would make Madoff's fund one of the biggest frauds in history."
- Madoff arrested over $50 billion fraud
Russell Wermers
(296) "The number of funds that have beaten the market over their entire histories is so small that the False Discovery Rate test can't eliminate the possibility that the few that did were merely false positives."
July 13, 2008
- as quoted in "The Prescient are Few", New York Times
Jason Zweig
(103) "Buying funds based purely on their past performance is one of the stupidest things an investor can do."
2007
- The Little Book of Common Sense Investing by John C. Bogle
Craig Israelsen, Ph.D
(51) "One thing is clear: Style drift happens to a sizable percentage of mutual funds...For [investors or] planners seeking to create portfolios tapping into consistently different equity styles, style drift presents a significant concern."
Nov. 1999
- Drift Happens, Financial Planning Interactive
John Keynes
(127) "The avoidance of taxes is the only intellectual pursuit that carries any reward."
Sept. 2007
- Money Magazine
Rosanne Pane
(204) "If a fund is drifting to a style that is dramatically different, your potential returns, volatility, and risk are going to change."
Nov. 1999
- Spotting 'Style Creep' When a fund starts to wander, returns can suffer, BusinessWeek Online
Bob Stansky, Manager Fidelity Magellan Fund
(26) "How do you beat the S&P 500? You beat it by overweighting some groups, underweighting others, and by owning stocks that aren't in the S&P. [i.e. style drift]... Sometimes I think if people knew how risky I was acting in the portfolio [Fidelity Magellan] they'd really be surprised. Just go back a bit -- I made AOL very big; I made Yahoo very big. I'm not afraid to make any bet." [that's scary]
Apr-02
Ron Surz, President, PPCA Inc.
(203) "Style drift is a serious problem for [investors] because it distorts asset allocation and undermines performance when styles rotate. Value managers who have drifted over the past three years [1998-2000] toward more favored growth stocks are regretting those moves, but not as much as their [investors]."
2001
Robert J. Zutz
(298) "The SEC deems it a fraud if performance results are compared to an inappropriate index, without disclosing the material differences between the index and the accounts under management."
August 2001
- "Compliance Review", Schwab Institutional, Vol 10, Issue 8
Theodore Aronson
(215) "None of my clients are taxable... Once you introduce taxes, active management probably has an insurmountable hurdle. We've been asked to manage taxable money -- and declined."
- Institutional Money Manager
Clifford Asness
(49) "Market-cap based indexing will never be driven from its deserved perch as core and deserved king of the investment world. It is what we should all own in theory and it has delivered low-cost equity returns to a great mass of investors...the now and forever king-of-the-hill."
2007
William Bernstein
(245) "While it is probably a poor idea to own actively managed funds in general, it is truly a terrible idea to own them in taxable accounts...(taxes are) a drag on performance of up to 4 percentage points each year...many index funds allow your capital gains to grow largely undisturbed until you sell....For the taxable investor, indexing means never having to say you're sorry."
2007
(250) "The typical fund company services [401k plan] participants in the same way that Baby Face Nelson serviced banks."
- Riding for a Fall, The 401(k) is likely to turn out to be a defined-chaos retirement plan.
(300) "For the taxable investor, indexing means never having to say you're sorry."
2002
- The Intelligent Asset Allocator
John Bogle
(110) "The miracle of compounding returns is overwhelmed by the tyranny of compounding costs."
2007
- The Little Book of Common Sense Investing
(117) "Managed funds are astonishingly tax-inefficient."
2007
- The Little Book of Common Sense Investing, p. 61
(120) "It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it."
2007
- The Little Book of Common Sense Investing
(121) "The general systems of money management [today] require people to pretend to do something they can't do and like something they don't. [It's] a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it's disgusting. It's much better to be part of a system that delivers value to the people who buy the product."
2007
(122) "The general systems of money management [today] require people to pretend to do something they can't do and like something they don't. [It's] a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it's disgusting. It's much better to be part of a system that delivers value to the people who buy the product."
2007
(124) "The multiple failings of our flawed financial sector are jeopardizing, not only the retirement security of our nation's savers but the economy in which our entire society participates."
24-Feb-09
- founder and former chief executive of The Vanguard Group, before the Committee on Education and Labor, U.S. House of Representatives, Washington, DC, Strengthening Worker Retirement Security
Gary Brinson
(82) "For the markets in total, the amount of value added, or alpha, must sum to zero. One person's positive alpha s someone else's negative alpha. Collectively, for the institutional, mutual fund, and private banking arenas, the aggregate alpha return will be zero or negative after transaction costs. Aggregate fees for the active managers should thus be, at most, the fees associated with passive management. Yet, these fees are several times larger than fees that would be associated with passive management. This illogical conundrum will ultimately have to end."
2007
Warren Buffett, Chairman, Berkshire Hathaway
(27) "If you can eliminate the government as a 39.6% partner, then you will be much better off."
-
(232) "The greatest Enemies of the Equity investor are Expenses and Emotions."
2007
- The Little Book of Common Sense Investing by John C. Bogle
James P. Garland, President, The Jeffrey Company
(301) "It's not brains or brawn that matter in taxable investing; it's efficiency. Taxable investing is a loser's game. Those who lose the least — to taxes and fees — stand to win the most when the game's all over."
1997
Mark Hebner, Founder, Index Fund Advisors, Inc.  
(144) "For most investors, tax loss harvesting is one of the most important ways to reduce tax liability now and in the future."
- President of Index Fund Advisors
Mark Hulbert
(142) "It is very hard, if not impossible," he wrote in his study, "to justify active management for most individual, taxable investors, if their goal is to grow wealth." And he said that those who still insist on an actively managed fund are almost certainly "deluding themselves."
21-Feb-09
Michael Jensen, Ph.D.
(299) "It is difficult to systematically beat the market. But it is not difficult to systematically throw money down a rat hole by generating commissions (and other costs)."
1984
- Forbes Magazine
Michael Keenan
(162) "Fiduciaries should strongly consider index funds as an alternative to actively managed funds. Index funds incur about 80% less in transaction costs than actively managed funds…long-term returns for actively managed funds trail their respective indexes."
May-08
- The Elephant in the Living Room, Financial Advisor Magazine
(163) "Fiduciaries should strongly consider index funds as an alternative to actively managed funds. Index funds incur about 80% less in transaction costs than actively managed funds…long-term returns for actively managed funds trail their respective indexes."
- The Elephant in the Living Room, Financial Advisor Magazine
Burton Malkiel
(30) "Index funds are...tax friendly, allowing investors to defer the realization of capital gains or avoid them completely if the shares are later bequeathed. To the extent that the long-run uptrend in stock prices continues, switching from security to security involves realizing capital gains that are subject to tax. Taxes are a crucially important financial consideration because the earlier realization of capital gains will substantially reduce net returns. Index funds do not trade from security to security and, thus, they tend to avoid capital gains taxes."
2007
Paul Samuelson, Nobel Laureate
(180) "Suppose it was demonstrated that one out of twenty alcoholics could learn to become a moderate social drinker. The experienced clinician would answer, 'Even if true, act as if it were false, for you will never identify that one in twenty, and in the attempt five in twenty will be ruined.' Investors should forsake the search for such tiny needles in huge haystacks."
2007
Upton Sinclair
(218) "It is difficult to get a man to understand something when his salary depends upon his not understanding it."
1994
- Candidate for Governor: And How I Got Licked (1935), ISBN 0-520-08198-6; repr. University of California Press, 1994, p.109.
David Swensen, chief investment officer, Yale University Endowment Fund
(60) "Invest in low-turnover, passively managed index funds...and stay away from profit-driven investment management organizations... The mutual fund industry is a colossal failure... resulting from its systematic exploitation of individual investors...as funds extract enormous sums from investors in exchange for providing a shocking disservice..... Excessive management fees take their toll, and (manager) profits dominate fiduciary responsibility."
2007
(63) "Most active mutual funds are more interested in collecting fees than in boosting returns for investors."
31-Jan-12
- John C. Bogle Legacy Forum, Bloomberg
(64) "I've always viewed high-frequency trading as a tax on the rest of us."
31-Jan-12
- John C. Bogle Legacy Forum, Bloomberg
Aronson Theodore, of Aronson & Partners
(8) "None of my clients are taxable... Once you introduce taxes, active management probably has an insurmountable hurdle. We've been asked to manage taxable money -- and declined."
- Institutional Money Manager
Jim Wiandt
(108) "In these topsy-turvy days of volatile markets, who knows what's up or down? The Dow could be up 250 today, and down 300 tomorrow. It's a fool's game playing market direction, and every diehard index fund investor knows it."
Mar-01
Aristotle
(7) "The probable is what usually happens."
1963
- Lady Luck, The Theory of Probability
William Bernstein
(241) "If your broker [or investment advisor] is not familiar with the concept of standard deviation of returns, get a new one."
2001
- The Intelligent Asset Allocator
(243) "It's bad enough that you have to take market risk. Only a fool takes on the additional risk of doing yet more damage by failing to diversify properly with his or her nest egg. Avoid the problem--buy a well-run index fund and own the whole market."
2002
- The Four Pillars of Investing
John Bogle
(113) "Index funds eliminate the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains."
2007
- The Little Book of Common Sense Investing
David Booth
(55) "You've already paid for the risk, so it might be good to stick around for the expected return."
- Dimensional Fund Advisors
Cicero
(47) "Probability is the very guide of life."
1963
- Lady Luck, The Theory of Probability, by Warren Weaver
Charles Ellis
(39) "The average long-term experience in investing is never surprising, but the short term experience is always surprising. We now know to focus not on rate of return, but on the informed management of risk."
1985
- Investment Policy
(40) "When asked what he considered man's greatest discovery, Albert Einstein replied without hesitation: 'Compound interest!'"
1985
- Investment Policy
(41) "The average long-term experience in investing is never surprising, but the short-term experience is always surprising. We now know to focus not on rate of return, but on the informed management of risk."
- Author, Investment Policy (1985), as well as ten other books on investing
Gary Belsky and Thomas Gilovich
(81) "Odds are you don't know what the odds are."
2000
- Why Smart People Make Big Money Mistakes
Benjamin Graham, (1894-1976) Legendary American investor, scholar, teacher and co-author of the book, "Security Analysis"
(12) "In the short run the stock market is a voting machine... (but) in the long run it is a weighing machine."
2007
- The Little Book of Common Sense Investing by John C. Bogle
(13) "The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored."
2007
Richard Green
(194) "For a long career full of breakthroughs that have advanced our understanding of financial markets, and his early fundamental work on efficient markets, we are proud to have Professor Fama as the first recipient of this prestigious award."
- Former AFA President and selection committee chair speech in which he bestowed the Morgan Stanley-AFA Award for Excellence in Finance to Eugene Fama
Marlena Lee
(149) "Return generation is the responsibility of the market, which sets prices to compensate investors for the risks they bear. "
- Author of Rebalancing and Returns
John Lennon
(126) "Nobody Told Me There'd Be Days Like These."
- Nobody Told Me
Marquis de Laplace, Theorie Analytique des Probabilites
(151) "The most important questions of life are, for the most part, really only problems of probability."
1963
- Lady Luck, The Theory of Probability, by Warren Weaver
Louis Pasteur, (1822 - 1895)
(136) "Chance favors the prepared mind."
Karl Pearson
(131) "The record of a month's roulette playing at Monte Carlo can afford us material for discussing the foundations of knowledge."
1963
- Lady Luck, The Theory of Probability, by Warren Weaver
William Sharpe, Nobel Laureate in Economics, 1990
(251) "Some investments do have higher expected returns than others. Which ones? Well, by and large they're the ones that will do the worst in bad times."
June 2007
- Nobel Laureate in Economics, 1990, Stanford Professor of Economics, as quoted in Money Magazine's July, 2007 issue
(253) "Some investments do have higher expected returns than others. Which ones? Well, by and large they're the ones that will do the worst in bad times."
July 2007
- Nobel Laureate in Economics, 1990, Stanford Professor of Economics, as quoted in Money Magazine
(254) "Some investments do have higher expected returns than others. Which ones? Well, by and large they're the ones that will do the worst in bad times."
July 2007
- Nobel Laureate in Economics, 1990, Stanford Professor of Economics, as quoted in Money Magazine
Gary Smith
(84) "Modern physics uses the normal distribution to describe the movements of molecules. The motion of each individual molecule is quite disordered, and yet their overall behavior is very predictable. This disordered movement is known as random walk. The idea of random walk was actually used by Laplace and others to analyze a gambler's chances of wandering into bankruptcy. Today, the random walk is applied to many phenomena, including the stock market."
1985
David Swensen, chief investment officer, Yale University Endowment Fund
(57) "When you look at the results on an after-fee, after-tax basis over reasonably long periods of time, there's almost no chance that you end up beating the index fund."
- Chief Investment Officer, Yale University Endowment, Economics Professor and author of Unconventional Success: A Fundamental Approach to Personal Investment, NPR, Yale Money Whiz Shares Tips on Growing a Nest Egg
Richard Thaler, Economist, University of Chicago Booth School of Business
(196) "Investors must keep in mind that there's a difference between a good company and a good stock. After all, you can buy a good car but pay too much for it."
1999
- Upside, July 6, 1999
Warren Weaver
(239) "One of the most striking and fundamental things about probability theory is that it leads to an understanding of the otherwise strange fact that events which are individually capricious and unpredictable can, when treated en masse, lead to very stable average performances."
1963
H.G. Wells
(88) "Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write."
1963
- Lady Luck, The Theory of Probability, by Warren Weaver
Anthony M. Gallea, William Patalon III
(6) "Investing is a strange business. It's the only one we know of where the more expensive the products get, the more customers want to buy them."
1998
- Contrarian Investing
Ted Aronson
(212) "It takes between 20 and 800 years of monitoring performance to statistically prove that a money manager is skillful rather than lucky - which is a lot more than most people have in mind when they say 'long-term' [track record]."
February 1999
- "Confessions of a Fund Pro", Money, pp. 73-75.
William Bernstein
(256) "Those who are ignorant of investment history are bound to repeat it. Historical investment returns and risks of various asset classes should be studied. Investment results for an asset over a long enough period (greater than 20 years) are a good guide to the future returns and risks of that asset. Further, it should be possible to approximate the future long-term return and risk of a portfolio consisting of such assets."
2001
Warren Buffett, Chairman, Berkshire Hathaway
(233) "I think the most important factor in getting out of the recession actually is just the regenerative capacity of American capitalism. And we had many recessions in the history of this country when nobody even heard of fiscal policy or monetary policy. The country always comes back."
9/23/2010
(234) "...it's important to have the right monetary policy. It's important for, to have the right fiscal policy. But it's nowhere near as important as just the normal regenerative capacity of American capitalism."
9/23/2010
- CNBC's Squawk Box
James Davis
(302) "While much has changed over the years, some things remain the same. There is still a strong relation between risk and expected return... Some things stand the test of time."
- Digging the Panama Canal
Susan Dziubinski, University editor with Morningstar.com
(211) "Statisticians will tell you that you need 20 years worth of data -- that's right, two full decades -- to draw statistically meaningful conclusions. Anything less, they say, and you have little to hang your hat on. But here's the problem for fund investors: After 20 successful years of managing a mutual fund, most managers are ready to retire. In fact, only 22 U.S. stock funds have had the same manager on board for at least two decades--and I wouldn't call all the managers in that bunch skilled."
2000
Michael Edesess
(164) "Let's Change Our Verb Tenses When Speaking of Investment Markets."
- The Big Investment Lie
Benjamin Graham, (1894-1976) Legendary American investor, scholar, teacher and co-author of the book, "Security Analysis"
(16) "The investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage."
- The Intelligent Investor
Mark Hebner, Founder, Index Fund Advisors, Inc.  
(138) "The bets laid down by predictin' that news will surely bring on the Speculation Blues."
- President of Index Fund Advisors
Patrick Henry
(173) "I know of no way of judging the future but by the past."
March 23, 1775
- Virginia Convention Speech
Sherlock Holmes
(207) "Data! Data! Data!" he cried impatiently, "I cannot make bricks without clay!"
1892
- The Adventure of the Copper Beeches - Sir Arthur Conan Doyle, 1892
Mark Hulbert
(140) "Assuming that the future is like the past, you can outperform 80 percent of your fellow investors over the next several decades by investing in an index fund—and doing nothing else. [But] acquire the discipline to do something even better: become a long-term index fund investor."
2007
Burton Malkiel
(32) "Historically, the stock market is like a gambling casino with the odds in your favor. Over the long pull, stocks are given something like nine and a half to ten percent compounded per year. The banks have probably given you something in the order of four to five."
1992
James Pardoe
(101) "Let other people overreact to the market...if you can stay cool while those around you are panicking, you can surely prevail."
2005
- Author, How Buffett Does It, 2005
Master Po
(153) "If a man dwells on the past, then he robs the present; but if a man ignores the past, he may rob the future. The seeds of our destiny are nurtured by the roots of our past."
1970s
- Kung Fu Television Series
Jeremy Siegel
(106) "The current financial crisis calls out for new products and services as well as more, not less, information about what is safe and profitable in the future environment."
- The Wall Street Journal
John Templeton
(208) "The four most dangerous words in investing are, It's different this time."
2002
- Money Magazine, Fall 2002, p. 25
Harry Truman
(92) "The only thing new in this world is the history you don't know."
- 33rd President of the United States
(93) "The only new thing in the world is the history you don't know."
Mark Twain
(148) "History doesn't repeat itself, but it rhymes."
Robert Arnott
(199) "Design a portfolio you are not likely to trade... akin to premarital counseling advice; try to build a portfolio that you can live with for a long, long time."
1999
- Is Your Alpha Big Enough to Cover Your Taxes? [answer is NO]
Warren Buffett, Chairman, Berkshire Hathaway
(235) "Our favorite holding period is forever."
1988
- 1988 Annual Report of Berkshire Hathaway
Charles Ellis
(37) "Investment Policy [asset allocation] is the foundation upon which portfolios should be constructed and managed."
1985 
- Investment Policy
Benjamin Franklin
(10) "An investment in knowledge pays the most interest."
Mark Hebner, Founder, Index Fund Advisors, Inc.  
(145) "Investing in the absence of an investment policy statement reduces decision making to an individual event-driven process of chasing short-term results, eliminating the expectation of achieving the long-term returns of capitalism."
- The 12-Step Program for Active Investors
(147) "It is a certainty that equity markets will be full of uncertainty. This uncertainty is the reason investors should expect returns."
- The 12-Step Program for Active Investors
Harry Markowitz, Father of Modern Portfolio Theory and recipient of the 1989 John von Neumann Theory Prize
(90) "To reduce risk it is necessary to avoid a portfolio whose securities are all highly correlated with each other. One hundred securities whose returns rise and fall in near unison afford little protection than the uncertain return of a single security."
- Efficient Diversification of Investment
Richard Thaler, Economist, University of Chicago Booth School of Business
(303) "Rip Van Winkle would be the ideal stock market investor: Rip could invest in the market before his nap and when he woke up 20 years later, he'd be happy. He would have been asleep through all the ups and downs in between. But few investors resemble Mr. Van Winkle. The more often an investor counts his money — or looks at the value of his mutual funds in the newspaper — the lower his risk tolerance."
Friedrich von Schiller
(80) "He that is overcautious will accomplish little."
Sept. 2007
- Money Magazine
Dave Astor
(54) Don't invest all your money in just one or two stocks. That's the danger. I know a man who put all his money in just two stocks --a paper towel company and a revolving door company. He was wiped out before he could turn around.
2001
William Bernstein
(242) "The essence of effective portfolio construction is the use of a large number of poorly correlated assets."
2001
- The Intelligent Asset Allocator
(244) "It's bad enough that you have to take market risk. Only a fool takes on the additional risk of doing yet more damage by failing to diversify properly with his or her nest egg. Avoid the problem—buy a well-run index fund and own the whole market."
2007
- The Little Book of Common Sense Investing by John C. Bogle
John Bogle
(291) [On the proliferation of ETFs], I think it's gone much too far. Most of them are not worth the powder to blow them to hell.
9-Dec-13
- Money Management Executive Magazine
(292) It's 1450 out of 1500 ETF funds that I just wouldn't touch because they're not diversified enough. Or they have some huge speculative twist to them that if you can guess the markets right you will do very well for a day or two but who can do that? Nobody.
9-Dec-13
- Money Management Executive Magazine
(293) "Now you can trade the S&P 500 Index in real time" was the slogan in the newspapers for the first ETF. What kind of nut would do that?
9-Dec-13
- Money Management Executive Magazine
Gary Brinson
(83) "Approximately 94 percent of variability of a fund's investment return is due to asset allocation -- Study of 91 large pension funds over a 10-year period."
1986, 1990
- Determinants of Portfolio Performance," Financial Analysts Journal, July-August 1986, Follow-up study, "Revisiting Determinants of Portfolio Performance: An Update," 1990 Working Paper
Rene Descartes, Discourse on Method
(190) "It is a truth very certain that when it is not in our power to determine what is true we ought to follow what is most probable."
1963
- Lady Luck, The Theory of Probability by Warren Weaver
Euripides
(75) "There is safety in numbers."
1963
- Lady Luck, The Theory of Probability by Warren Weaver
Eugene Fama Jr.
(72) "Ninety-seven percent of performance variation is due to asset class structure -- Study of 31 institutional pension funds during a range of six- to 12-year periods."
1997
- Dimensional Fund Advisors' Conference, University of Chicago Graduate School of Business
(74) "History shows that in the long run a thoughtfully designed, diversified strategy of "passive" funds typically beats all but a few active managers. It's not easy to structure and maintain such a strategy. It requires some initial research and discipline to stay the course. But it's much easier than predicting which active managers will randomly beat this approach."
2001
(85) "Investment planning is about structuring exposure to risk factors."
December 2001
- The Error Term
Majeed Farouki, chief investment officer
(78) "The $4.8 billion Orange County Employees' Retirement System, Santa Ana, Calif., more than doubled its total indexed assets to $1.2 billion during the 12 months ended Sept. 30, 2001, from $593 million the year before." "We think that (indexed) exposure was a reasonable portfolio for the return characteristics and compared favorably with active (management)," he said.
January 2002
Roger Ibbotson
(202) "We can extrapolate from the study that for the long term individual investor who maintains a consistent asset allocation and leans toward index funds, asset allocation determines about 100% of performance."
2001
- The True Impact of Asset Allocation on Returns
Christopher Jones
(46) "Participants who didn't seek help often made mistakes in risk with their portfolios — either too much or too little."
January 26, 2010
- CIO Financial Engines, Pensions and Investments
Kermit the Frog
(132) "It's Not Easy Bein' Green"
- As sung by Kermit the Frog, with lyrics by Joe Rapposo
Evel Knievel, Motorcyclist
(76) "Risk is good. Not properly managing your risk is a dangerous leap."
Matt Krantz
(154) "Remember when you buy a commodity, you're not buying something that generates earnings and profit. You're buying a hard asset and hoping another buyer will be willing to pay more for that asset in the future."
- USA Today, 6/23/2008, Read this before you jump on the commodities bandwagon
Harry Markowitz, Father of Modern Portfolio Theory and recipient of the 1989 John von Neumann Theory Prize
(91) "A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies."
- Nobel Laureate in Economic Sciences, Professor of Economics at University of California at San Diego
Miguel de Cervantes
(168) "'Tis the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket."
1605-1615
- Don Quixote de la Mancha
Merton Miller, Nobel Laureate and Professor of Economics, Univ. of Chicago
(304) "Diversification is your buddy."
1990
Roger G. Ibbotson and Paul D. Kaplan
(201) "On average, 90 percent of the variability of returns and 100 percent of the absolute level of return is explained by asset allocation."
1998, December, revised April 1999
William Sharpe, Nobel Laureate in Economics, 1990
(252) "What if your advisor talks only about returns, not risk? ...It's his job to take risk into account by telling you the range of possible outcomes you face. If he won't, go to a new planner, someone who will get real."
June 2007
- Money Magazine
Jeremy Siegel
(105) "It can be shown that maximum diversification is achieved by holding each stock in proportion to its value to the entire market (italics added).... Hindsight plays tricks on our minds....often distorts the past and encourages us to play hunches and outguess other investors, who in turn are playing the same game. For most of us, trying to beat the market leads to disastrous results...our actions lead to much lower returns than can be achieved by just staying in the market."
2007
Clark Truman
(217) "Investors acquiring commodity futures in expectations of higher returns, lower risk, and improved inflation protection are making bets. Current evidence indicates that the odds are against them."
- Former Professor of Finance, University of Southern California, Commodity Futures in Portfolios
Clifford Asness
(50) "If you would be wealthy, think of Saving as well as Getting.....Remember that time is money....Beware of little Expenses; a small Leak will sink a great Ship..... There are no Gains, without Pains....He that would catch Fish, must venture his Bait...Great Estates may venture more, but little Boasts should keep near the shore....Tis easy to see, hard to forsee....Industry, Perseverance, and Fruglity make Fortune yield."
2007
William Bernstein
(246) "You will want to ensure that your adviser is choosing your investments purely on their investment merit and not on the basis of how the vehicles reward him. The warning signs here are recommendations of load funds, insurance products, limited partnerships, or separate accounts. ...Your adviser should use index/passive stock funds wherever possible. If he tells you that he is able to find managers who can beat the indexes, he is fooling both you and himself. I refer to a commitment to passive indexing as 'asset-class religion.' Don't hire anyone without it."
2007
(305) "A decade ago, I really did believe that the average investor could do it himself. I was wrong. I've come to the sad conclusion that only a tiny minority, at most one percent, are capable of pulling it off. Heck, if Helen Young Hayes, Robert Sanborn, Julian Robertson, and the nation's largest pension funds can't get it right, what chance does John Q. Investor have?"
2003
- The Probability of Success
Warren Buffett, Chairman, Berkshire Hathaway
(238) "You only find out who is swimming naked when the tide goes out."
2002
- Letter to Shareholders, February 28, 2002
Mark Dempsey
(137) "What is the best investment for the average investor? Thorley agreed with Odean: index funds." [Thorley and Odean are professors who study the market)
2000
- Robbing You Blind
Albert Einstein
(5) "Insanity: doing the same thing over and over again and expecting different results."
- Definition of Insanity
Benjamin Graham, (1894-1976) Legendary American investor, scholar, teacher and co-author of the book, "Security Analysis"
(14) "The true investor...will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies."
2007
Mark Hebner, Founder, Index Fund Advisors, Inc.  
(139) "Important services such as rebalancing, tax managed investments and tax loss harvesting help investors maximize returns at a given level of risk."
- IFA President
Mark Hulbert
(306) "Index funds are the only rational alternative for almost all mutual fund investors."
July 13, 2008
- "The Prescient are Few", New York Times
Paul Merriman
(175)  "If we could choose only one family of funds for the ideal 401(k) plan, it would be Dimensional Fund Advisors. We believe DFA's institutional index funds are the best, and employees whose plans include them are fortunate...In 2001, a portfolio of DFA funds weighted equally among the asset classes we listed above would have appreciated by 1 percent. Doesn't seem like much but it's much better than the 12 percent loss in the Standard & Poor's 500 Index and the 23 percent decline by the average large-company growth fund."
16-Jan-02
Jack Meyer
(97) "Yes. First, get diversified. Come up with a portfolio that covers a lot of asset classes. Second, you want to keep your fees low. That means avoiding the most hyped but expensive funds, in favor of low-cost index funds. And finally, invest for the long term. [Investors] should simply have index funds to keep their fees low and their taxes down. No doubt about it."
2007
Publilius Syrus
(189) "Many receive advice, few profit by it."
42 B.C.
- quoted in Money Magazine, September 2007
Knut Rostad
(133) "The case highlights the wide gap and opposing roles of a broker who is permitted in law to further his and his firm's interests at the expense of customers, and a fiduciary who is required in law to put his clients' interests first. This is at the core of why the fiduciary standard is important."
Meir Statman, Professor of Finance, Santa Clara University and author of What Investors Really Want
(157) "If you passed a law saying that [members of Congress and their staffs] can only invest in index funds, on the whole you would do them a great favor, for two reasons. First, they won't be reading news coverage about themselves that they and their constituents don't like. And two, they're more likely to make more money on index funds than by trying to outsmart the market."
16-Oct-10
Jim Wiandt
(107) "If you believe in indexing, then you know that there is no free money. Ultimately, the push toward enhanced indexing is about enhancing the bottom line for managers.... But it's important for us to keep our eyes on the ball and remember what makes indexing, well, indexing. Low fees, broad diversification, hold hold hold. Don't believe the hype. Try to beat the market—in any manner—and you're likely to get beat...by about the cost of doing it."
2007

Authors (136)

J.P. Morgan's reply when asked what the stock market will do. (1)
2002 Mutual Funds Guide (1)
Anonymous (1)
Anthony M. Gallea, William Patalon III (1)
Aristotle (1)
Arnott, Robert (2)
Aronson, Ted (1)
Aronson, Theodore (1)
Arthur Cashin, CNBC Commentary (1)
Asness, Clifford (2)
Astor, Dave (1)
Banks, Harry (1)
Bernstein, Peter (1)
Bernstein, William (17)
Bodie, Zvi (1)
Bogle, John (20)
Bohr, Nils (1)
Booth, David (1)
Brinson, Gary (2)
Buffett, Warren (22)
Cicero (1)
Clements, Jonathan (1)
Cohan, Peter (1)
Cohen, Steven (1)
Control (1)
Cramer, Jim (1)
Davis, James (2)
Davis, Jonathon (1)
Dempsey, Mark (1)
Descartes, Rene (1)
Dickson, Joel (1)
Dziubinski, Susan (1)
Edesess, Michael (1)
Einstein, Albert (1)
Ellis, Charles (10)
Ennis, Richard (1)
Euripides (1)
Fama Jr., Eugene (4)
Fama, Eugene (7)
Farouki, Majeed (1)
Fiedler, Edgar (1)
Fossel, Jon (1)
Franklin, Benjamin (1)
Garland, James P. (1)
Gary Belsky and Thomas Gilovich (1)
Glassman, James (1)
Graham, Benjamin (10)
Green, Richard (1)
Gross, Bill (1)
Haskel, Eddie (1)
Hebner, Mark (8)
Henry, Patrick (1)
Hiltzik , Michael (1)
Holmes, Sherlock (1)
Huebscher , Robert (1)
Hugo, Victor (1)
Hulbert, Mark (4)
Ibbotson, Roger (1)
Israelsen, Craig (1)
James, Davis (1)
Jenkins, Jr., Holman (1)
Jensen, Michael (3)
Jonathan, Clements (1)
Jones , Howard (1)
Jones, Christopher (1)
Kahneman, Daniel (9)
Keenan, Michael (2)
Kermit the Frog (1)
Keynes, John (1)
King, Jr., Martin Luther (1)
Knievel, Evel (1)
Krantz, Matt (1)
Laderman, Jeffrey (1)
Langbein, John (1)
Lee, Marlena (1)
Lennon, John (1)
Lewis, Michael (3)
Lynch, Peter (3)
Magurean III, Peter (1)
Malkiel, Burton (9)
Markowitz, Harry (4)
Marquis de Laplace (2)
McLean, Bethany (1)
Merriman, Paul (1)
Meyer, Jack (2)
Miguel de Cervantes (1)
Miller, Bill (1)
Miller, Merton (5)
Nassim Nicholas Taleb (2)
Pane, Rosanne (1)
Pardoe, James (1)
Pasteur, Louis (1)
Patricia, Dunn (1)
Pearson, Karl (1)
Peter Robison, Asjylyn Loder, and Alan Bjerga (1)
Po, Master (1)
Professor Richard Thaler (1)
Publilius Syrus (1)
Roger G. Ibbotson and Paul D. Kaplan (1)
Rolfe, David (1)
Ross, Ron (2)
Rostad, Knut (1)
Samuelson, Paul (16)
Schwab, Charles (4)
Schwed, Jr., Fred (2)
Sharpe, William (5)
Siegel, Jeremy (2)
Sinclair, Upton (1)
Sinquefield, Rex (2)
Smith, Gary (1)
Smith, Greg (1)
Soros, Robert (1)
Stansky, Bob (1)
Statman, Meir (3)
Stovall, Robert (1)
Surz, Ron (1)
Swensen, David (10)
Templeton, John (1)
Thaler, Richard (2)
The Ambachtsheer Letter (1)
The Economist, July 3, 2003, "The Blame Game" (1)
The Financial Press (1)
Theodore, Aronson (1)
Truman, Clark (2)
Truman, Harry (2)
Trzcinka, Charles (1)
Twain, Mark (1)
Tzu, Lao (1)
von Schiller, Friedrich (1)
Weaver, Warren (1)
Wells, H.G. (1)
Wermers, Russell (1)
Wiandt, Jim (2)
Yoda, by George Lucas (1)
Zutz, Robert J. (1)
Zweig, Jason (2)
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