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Quote by Charles R. Schwab

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

Author

Charles R. Schwab

Charles R. Schwab, born on July 29, 1937, is an accomplished American businessman known for his contributions to the financial services industry. He is particularly recognized for founding Charles Schwab Corporation, which revolutionized personal investing with its online trading and investment services. more

“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