“I examined my Liberalism and found it like an addiction to roulette. Here, though the odds are plain, and the certainty of loss apparent to anyone with a knowledge of arithmetic, the addict, failing time and again, is convinced he yet is graced with the power to contravene natural laws. The roulette addict, when he invariably comes to grief, does not examine either the nature of roulette, or of his delusion, but retires to develop a new system, and to scheme for more funds.” DoeLawFoundNaturalLossGriefFailingAddictionConvincedCertaintyLiberalismDelusionFundRetiringOddsSchemesAddictNatural LawArithmeticRoulette Author:David Mamet
“Many financial advisors recommend that you diversify for your own protection. What they fail to tell you is that it is also for their protection. Since most financial advisors cannot tell you exactly which stock or mutual fund is a great investment, they tell you to buy a bunch of them.” FailingInvestmentFinancialProtectionBunchFundMutualAdvisorsMutual FundFinancial Advisor Author:Robert Kiyosaki
“A minuscule 4 percent of funds produce market-beating after-tax results with a scant 0.6 percent (annual) margin of gain. The 96 percent of funds that fail to meet or beat the Vanguard 500 Index Fund lose by a wealth-destroying margin of 4.8 percent per annum.” LosesWealthResultsFailingProduceTaxesBeatsPercentGainsInvestingFundDestroyingMarginsAnnualsVanguardIndex Funds Author:David F. Swensen
“Santa Claus and the Easter Bunny should take a few pointers from the mutual-fund industry. All three are trying to pull off elaborate hoaxes. But while Santa and the bunny suffer the derision of eight year olds everywhere, actively-managed stock funds still have an ardent following among otherwise clear-thinking adults. This continued loyalty amazes me. Reams of statistics prove that most of the fund industry's stock pickers fail to beat the market.” ThinkingShouldTryingYearsStillsSufferingThreeClearFailingIndustryProveBeatsAdultsInvestingFollowingEightLoyaltyFundMutualStatisticsEasterSantaSanta ClausArdentBunniesMutual FundDerisionHoaxesPointersClear ThinkingEaster Bunny Author:Jonathan Clements
“It's bad enough that you have to take market risk. Only a fool takes on the additional risk of doing yet more damage by failing to diversify properly with his or her nest egg. Avoid the problem-buy a well-run index fund and own the whole market.” WellsEnoughWholeProblemRunningFailingRiskFoolInvestingDamageFundEggsNestsIndex FundsMarket Risk Book:The Four Pillars of Investing Source: The Four Pillars of Investing