Investing Quotes - Page 21

• Fund investors are confident that they can easily select superior fund managers. They are wrong.

  John C. Bogle

  Select, Fund, Managers

  John C. Bogle (2010). “The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns”, p.11, John Wiley & Sons

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• The commission of the investment sins listed above is not limited to 'the little guy.' Huge institutional investors, viewed as a group, have long underperformed the unsophisticated index-fund investor who simply sits tight for decades. A major reason has been fees: Many institutions pay substantial sums to consultants who, in turn, recommend high-fee managers. And that is a fool's game.

  Warren Buffett

  Games, Long, Guy

  "Here are the 6 things Warren Buffett considers when making an investment" by Jeremy Schwartz, www.businessinsider.com. March 14, 2015.

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• Santa Claus and the Easter Bunny should take a few pointers from the mutual-fund industry. 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.

  Jonathan Clements

  Loyalty, Easter, Thinking

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• 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.

  Jonathan Davis

  Block, Cities, Long

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• 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.

  Eugene Fama

  People, Decision, Risk

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• 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. So 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.

  Eugene Fama

  People, Would Be, Lucky

  "A Father of Modern Finance" by Rebecca Rolfes, www.chicagobooth.edu. 2013.

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• I don't try to be clever at all. The idea that I could see what no one else can is an illusion.

  Daniel Kahneman

  Clever, Ideas, Trying

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• 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.

  Michael Lewis

  People, Clients, Financial

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• History has shown that in every age and in every field of human knowledge, many of the views which almost everyone accepted as true and never bothered to think about further, were in time proven completely wrong.

  Philip Arthur Fisher

  Thinking, Views, Age

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• Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.

  Warren Buffett

  Knowing, Long, Risk

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• In an economy, an act, a habit, an institution, or a law, gives birth not only to an effect, but to a series of effects. Of these effects, the first only is immediate; it manifests itself simultaneously with its cause - it is seen. The others unfold in succession - they are not seen. Now this difference is enormous, for it is often true that when the immediate consequence is favorable, the ultimate consequences are fatal, and the converse.

  Frederic Bastiat

  Law, Differences, Giving

  "That Which Is Seen and That Which Is Not Seen". Book by Frédéric Bastiat, 1850.

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• The only certainty is that there is no certainty.

  Robert Rubin

  Certainty

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• Berkshire was built on the eternal verities: basic mathematics, basic horse sense, basic fear, and basic diagnosis of human nature to make predictions regarding human behavior. We stuck to the basics with a certain amount of discipline and it has worked out quite well.

  Charlie Munger

  Horse, Discipline, Diagnosis

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• Investment based on genuine long-term expectations is so difficult today as to be scarcely practicable.

  John Maynard Keynes

  Long, Expectations, Today

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• When the brothel burns down, even the pretty girls have to run out.

  Warren Buffett

  Girl, Running, Brothels

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• An intelligent investor gets satisfaction from the thought that his operations are exactly opposite to those of the crowd.

  Benjamin Graham

  Intelligent, Opposites, Crowds

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• The only intelligence investing is value investing...to acquire more than one is paying for.

  Charlie Munger

  Acquire, Values

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• If you expect to continue to purchase stocks throughout your life, you should welcome price declines as a way to add stocks more cheaply to your portfolio.

  Warren Buffett

  Add, Way, Portfolios

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• The premise of this book is that it is easier to recognize other people's mistakes than your own.

  Daniel Kahneman

  Mistake, Book, People

  Daniel Kahneman (2011). “Thinking, Fast and Slow”, p.31, Macmillan

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• My main life lesson from investing: self-interest is the most powerful force on earth, and can get people to embrace and defend almost anything.

  Jesse Lauriston Livermore

  Powerful, Life Lesson, Self

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• Confidence in a forecast rises with the amount of information that goes into it. But the accuracy of the forecast stays the same.

  Dean Williams

  Information, Accuracy, Amount

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• If Bill Gates woke up with Oprah's money he'd jump out the window.

  Chris Rock

  Bills, Window, Gates

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• You never know what the American public is going to do, but you know that they will do it all at once.

  L. William Seidman

  Knows

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• History doesn't crawl; it leaps.

  Nassim Nicholas Taleb

  Leap

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• If you roll dice, you know that the odds are one in six that the dice will come up on a particular side. So you can calculate the risk. But, in the stock market, such computations are bull - you don't even know how many sides the dice have!

  Nassim Nicholas Taleb

  Odds, Risk, Bulls

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