Quotes

Quotes by David Swensen

(10)
(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
(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
(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
(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
(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
(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