Home / Quotes / Quote by Paul Samuelson

Quote by Paul Samuelson

“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 Wilshire 5000-index fund and the remaining 30 percent in an international-index fund.”

Quote by Paul Samuelson

Author

Paul Samuelson was an American economist renowned for his contributions to the field of economics. Born on May 15, 1915, and passing away on December 13, 2009, Samuelson was a significant figure in modern economics. His book 'Economics' has been widely used as a textbook in universities. more

You May Also Like

“Nobody wants to be passive; indexing is not passive - much more goes into indexing than watching a stock become the next buggy whip.”

Want Next Investing Passive Whips Indexing

Author:Charles R. Schwab

“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.”

Mean Doe Return Investing Investors Passive Considering Baskets Disservice Changes Over Time Indexing

Author:Charles R. Schwab

“Most of the mutual fund investments I have are index funds, approximately 75%.”

Investment Investing Fund Mutual Mutual Fund Index Funds

Author:Charles R. Schwab

“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?”

Trying Years Humans Persons Play Fun Human Nature Performances Horse Investing Average Screws Select Average Person Predictability

Author:Charles R. Schwab

“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.”

Principles Cost Dollars Investing Average Guilty Analysis Measurement Active Management

Author:William Forsyth Sharpe

“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.”

Should Individual Percent Investing Access Investors Passive Qualified

Author:David F. Swensen

“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.”

Knows Individual Security Serious Intelligent Investing Managers Leap Disagree Investors Academic Consensus Thrust Analysts Hurdle

Author:John C. Bogle

“How can smart women be so stupid about men sometimes? Lack of knowledge. It's what men have kept secret for so long.”

Men Long Sometimes Success Faith Secret Relationship Stupid Smart Harvey Smart Women Lack Of Knowledge Kept Secrets

Author:Steve Harvey

“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.”

Humans Human Beings Decision Theory Evidence Remains Errors Investing Financial Rational Investors Irrational Apostles Predictable Systematic

Author:John C. Bogle

“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.”

Ifs Thinking I Can Purpose Taken Theory Models Investment Investing Behave Investors Efficient Efficient Markets

Author:Eugene Fama