The Little Book Of Common Sense Investing: The Only Way To Guarantee Your Fair Share Of Stock Market Returns Quotes
"The most that owners in aggregate can earn between now and Judgment Day is what their businesses in aggregate earn."
"For investors as a whole, returns decrease as motion increases."
"The index fund eliminates the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains."
"Beating the market before costs is a zero-sum game."
"Beating the market after costs is a loser’s game."
"Costs make the difference between investment success and investment failure."
"The higher the level of their investment activity, the greater the cost of financial intermediation and taxes, the less the net return that shareholders receive."
"In the long run, stock returns depend almost entirely on the reality of the investment returns earned by our corporations."
"Over time, the aggregate gains made by shareholders must of necessity match the business gains of the company."
"Investing is about owning businesses and reaping the huge rewards provided by the dividends and earnings growth of our nation’s corporations."
"The stock market is a giant distraction to the business of investing."
"The miracle of compounding returns is overwhelmed by the tyranny of compounding costs."
"Performance comes and goes. Costs go on forever."
"The more the managers take, the less the investors make."
"Most comparisons of fund costs focus solely on reported expense ratios, and uniformly find that higher costs are associated with lower returns."
"The more the managers and brokers take, the less the investors make."
"Investors should make expense ratios a primary test in fund selection."
"If the managers take nothing, the investors receive everything: the market’s return."
"Mutual fund managers give dividend income a low priority."
"Actively managed equity funds confiscate your dividend income."
"The returns reported by mutual funds are rarely earned by mutual fund investors."
"Money flows into most funds after good performance, and goes out when bad performance follows."
"The dual penalties of costs and investor behavior."
"Inflamed by heady optimism and greed, and enticed by the wiles of mutual fund marketers, investors poured their savings into equity funds at the bull market peak."
"Investor emotions plus fund industry promotions equals trouble."
"For the average person, I’m more of an indexer."
"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."
"Invest you must. The biggest risk is the long-term risk of not putting your money to work at a generous return, not the short-term risk of market volatility."
"Time is your friend. Give yourself all the time that you possibly can."
"Your net return is simply the gross return of your investment portfolio less the costs you incur. So minimize your investment expenses."
"Don’t think that you know more than the market; no one does."
"Whether your assets are great or humble, diversify, diversify, diversify."
"No matter what happens, stick to your program. Think long term."
"Patience and consistency are the most valuable assets for the intelligent investor."
"Avoid the high-cost, high-turnover, opportunistic marketing modalities that characterize today’s financial services system."
"Little can change the fact that current expected returns on a broad set of asset classes are low versus history. Stick to the basics with discipline."