Quotes About Investing

Burton Malkiel, professor of economics, Princeton University and author of A Random Walk Down Wall Street: "Through the past thirty years more than two-thirds of professional portfolio managers have been outperformed by the unmanaged S&P 500 Index.

Jason Zweig, senior writer and columnist at Money magazine and coauthor of the revised edition of Benjamin Graham's classic, The Intelligent Investor: "If you buy-and then hold-a total stock market index fund, it is mathematically certain that you will outperform the vast majority of all other investors in the long run. Graham praised index funds as the best choice for individual investors, as does Warren Buffett.

Whenever possible, we will use index funds with their low cost and low turnover.

An index fund dooms you to mediocrity? Absolutely not: It virtually guarantees you superior performance.

With an index fund, the certainty of keeping up with the market is a very worthwhile trade-off for the possibility of beating it.

Warren Buffett, chairman of Berkshire Hathaway and investor of legendary repute: "Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.

it's very important when using mutual funds in taxable accounts to use tax-efficient mutual funds or ETFs. Tax efficiency is relative. The idea is to locate the least tax-efficient funds in your tax-advantaged accounts and the most tax-efficient funds in your taxable account.

Rebalancing forces us to sell high and buy low. We're selling the outperforming asset class or segment and buying the underperforming asset class or segment. That's exactly what smart investors want to do.

only way to be sure how the redemption fee is assessed in a fund that you're considering investing in is to read the prospectus carefully.

Invest most or all of your money in index funds. Keep your costs of investing and taxes low.

I'm a big believer in investing for the long term, and the decisions you make shouldn't be made if the economy is good or bad at a specific time.

In the early days, I promoted the idea of spending time in libraries to gain facts that other investors didn't have. Not many people did that kind of research, so it worked.

Wouldn't it be amazing if we spent as much energy investing in experiences as we do investing in things?

I don't spoil myself on extravagant cars or spending money on jewelry. So I save a lot of the money I have.

Some people, through luck and skill, end up with a lot of assets. If you're good at kicking a ball, writing software, investing in stocks, it pays extremely well.

Value investing is at its core the marriage of a contrarian streak and a calculator.

Anybody who plays the stock market not as an insider is like a man buying cows in the moonlight.

The wise man once said invest young

Always consider investing in a grade-A man with a grade-B idea. Never invest in a grade-B man with a grade-A idea.

When bond prices fall, interest rates soar, with painful consequences for all borrowers.

It nevertheless remains true that, in most countries for which long-run data are available, stocks have out-performed bonds – by a factor of roughly five over the twentieth century.

Optimistic buyers of stocks are bulls, pessimistic sellers are bears.

The average mutual fund holding period for equity or fixed income is only about three years. It's too short.

I just don't like mutual funds. I think they're a rip-off.