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Indexing Quotes

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Indexing Quotes

“[Citing "Alice in Wonderland"] the White Knight insists on singing Alice a song which he introduces as follows: 'The name of the song is called "Haddocks' Eyes".' 'Oh, that's the name of the song, is it?' Alice said, trying to feel interested. 'No, you don't understand,' the Knichgt said, looking a little vexed. 'That's what the name is called. The name really is "The Aged Aged Man".”

“The simple index fund solution has been adopted as a cornerstone of investment strategy for many of the nation's pension plans operated by our giant corporations and state and local governments. Indexing is also the predominant strategy for the largest of them all, the retirement plan for federal government employees, the Federal Thrift Savings Plan (TSP). The plan has been a remarkable success, and now holds some $173 billion of assets for the benefit of our public servants and members of armed services.”

“While it is probably a poor idea to own actively managed funds in general, it is truly a terrible idea to own them in taxable accounts... taxes are a drag on performance of up to 4 percentage points each year... many index funds allow your capital gains to grow largely undisturbed until you sell... For the taxable investor, indexing means never having to say you're sorry.”

“For the taxable investor, indexing means never having to say you're sorry.”

“Socialist countries throughout the world love to lower retirement ages to make people prematurely dependent on the government. But we should move in the opposite direction. In the long run, indexing retirement to life expectancy will yield enormous revenues to the system, far more than a one-shot increase in the age in the current legislative cycle.”

“To value investors the concept of indexing is at best silly and at worst quite hazardous. Warren Buffett has observed that "in any sort of a contest - financial, mental or physical - it's an enormous advantage to have opponents who have been taught that it's useless to even try." I believe that over time value investors will outperform the market and that choosing to match it is both lazy and shortsighted.”