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Quote by Michael Lewis

“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.”

Quote by Michael Lewis

Author

Michael Lewis, born on October 15, 1960, is a renowned American author. His works are known for their in-depth investigations and revelations of the truths in the financial, business, and sports worlds. more

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“I have become increasingly convinced that the past records of mutual fund managers are essentially worthless in predicting future success. The few examples of consistently superior performance occur no more frequently than can be expected by chance.”

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Author:Burton Malkiel

“Experience conclusively shows that index-fund buyers are likely to obtain results exceeding those of the typical fund manager, whose large advisory fees and substantial portfolio turnover tend to reduce investment yields. Many people will find the guarantee of playing the stock-market game at par every round a very attractive one. The index fund is a sensible, serviceable method for obtaining the market's rate of return with absolutely no effort and minimal expense.”

“We conclude that hedge funds are far riskier and provide much lower returns than commonly supposed.”

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“It's like giving up a belief in Santa Claus.”

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“Hollywood is run by people who sit up in their executive office, who are not connected to Mississippi, Alabama, Chicago, South Carolina. They know nothing about that, they don't go to church, and they make their decisions about what they think is right.”

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Author:Steve Harvey

“... skepticism about past returns is crucial. The truth is, much as you may wish you could know which funds will be hot, you can't - and neither can the legions of advisers and publications that claim they can. That's why building a portfolio around index funds isn't really settling for average. It's just refusing to believe in magic.”

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Author:Bethany McLean

“The number of managers with great track records in a given market depends far more on the number of people who started in the investment business (in place of going to dental school), rather than on their ability to produce profits.”

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Book:Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets

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“Wall Street's favorite scam is pretending that luck is skill.”

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Author:Ronald Ross

“In every mutual fund prospectus, in every sales promotional folder, and in every mutual fund advertisement (albeit in print almost too small to read), the following warning appears: "Past performance is no guarantee of future results."”

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Author:Paul Samuelson

“Getting an unsophisticated client was the golden prize. The quickest way to make money on Wall Street is to take the most sophisticated product and try to sell it to the least sophisticated client.”

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Author:Greg Smith