“Of course we have to make a profit, but we have to make a profit over the long haul, not just the short term, and that means we must keep investing in research and development - it has run consistently about 6 percent of sales at Sony - and in service.” MeanLongRunningCoursesTermDevelopmentResearchPercentInvestingProfitConsistentlyShort TermHaulResearch And DevelopmentSonyLong Haul Author:Akio Morita
“On average, 90 percent of the variability of returns and 100 percent of the absolute level of return is explained by asset allocation.” LevelsReturnPercentAbsolutesInvestingAverageAssetsAllocationVariabilityAsset Allocation Author:Roger G. Ibbotson
“Economists suffer from a deep psychological disorder that I call 'physics envy'. We wish that 99 percent of economic behavior could be captured by three simple laws of nature. In fact, economists have 99 laws that capture 3 percent of behavior. Economics is a uniquely human endeavor.” HumansFactsLawSufferingThreeWishSimpleEconomicBehaviorPercentEconomicsInvestingEnvyPhysicsPsychologicalEndeavorCaptureDisorderEconomistLaws Of NatureCapturedPsychological Disorders Author:Andrew Lo
“The S&P is up 343.8 percent for 10 years. That is a four-bagger. The general equity funds are up 283 percent. So it's getting worse, the deterioration by professionals is getting worse. The public would be better off in an index fund.” YearsWould BeFourPercentInvestingFundBetter OffEquityDeteriorationIndex FundsBagger Author:Peter Lynch
“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.” WantWellsStillsMightFansFiguresBehaviorPercentInvestingInternationalActiveSellingBuyingFundInvestorsSensibleEfficientDiscouragingPortfoliosBuying And SellingIndex Funds Author:Paul Samuelson
“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.” ShouldIndividualPercentInvestingAccessInvestorsPassiveQualified Author:David F. Swensen
“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
“Nothing highlights better the continuing gap between rhetoric and substance in British financial services than the failure of providers here to emulate Jack Bogle's index fund success in the United States. Every professional in the City knows that index funds should be core building blocks in any long-term investor's portfolio. Since 1976, the Vanguard index funds has produced a compound annual return of 12 percent, better than three-quarters of its peer group.” KnowsShouldLongStatesThreeTermUnitedCitiesUnited StatesGroupsBuildingReturnPercentInvestingFinancialBritishCoreBlockSubstanceLong TermFundGapsInvestorsQuartersContinuingRhetoricPeersCompoundsAnnualsHighlightsEmulateProvidersPortfoliosBuilding BlocksVanguardIndex FundsFinancial ServicesPeer Group Author:Jonathan Davis
“The general systems of money management today require people to pretend to do something they can't do and like something they don't. It's a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals.” PeopleWayGivingYearsTwoWholeTodayTogetherGuyValuesThreePoorFourProductsTerriblePercentBasesManagementInvestmentInvestingFundMutualPercentagesLike SomethingBuyersMoney ManagementGeneral PublicFunny BusinessBrokersMutual FundInvestment Management Author:John C. Bogle
“Historically, the stock market is like a gambling casino with the odds in your favor. Over the long pull, stocks are given something like nine and a half to ten percent compounded per year. The banks have probably given you something in the order of four to five.” YearsLongOrderGivenHalfFiveFourTenPercentInvestingFavorsNineGamblingOddsCasinos Author:Burton Malkiel
“A decade ago, I really did believe that the average investor could do it himself. I was wrong. I've come to the sad conclusion that only a tiny minority, at most one percent, are capable of pulling it off. Heck, if Helen Young Hayes, Robert Sanborn, Julian Robertson, and the nation's largest pension funds can't get it right, what chance does John Q. Investor have?” IfsBelieveDoeYoungNationsChanceCapablePercentInvestingAverageDecadesTinyConclusionMinoritiesFundInvestorsPullingPensionHelen Author:William J. Bernstein
“Assuming that the future is like the past, you can outperform 80 percent of your fellow investors over the next several decades by investing in an index fund-and doing nothing else. But acquire the discipline to do something even better: become a long-term index fund investor.” LongPastNextTermDisciplinePercentFellowsAssumingInvestingDecadesLong TermAcquireFundInvestorsDoing NothingIndex Funds Author:Mark Hulbert
“Index investing is an investment strategy that Walter Mitty would love. It takes very little investment knowledge, no skill, practically no time or effort-and outperforms about 80 percent of all investors.” LittlesEffortSkillsPercentStrategyInvestmentInvestingInvestorsPassiveWalter Mitty Book:The Bogleheads' Guide to Investing Source: The Bogleheads' Guide to Investing
“Facts are that the financial advisers on Wall Street today or anywhere depending on which firm, what point in time - 85 to 88 percent male, and that is part of why investing for women they tell us feels unapproachable because they don't see people who look like them.” PeopleFeelsLooksFactsTodayStreetsWallPercentMalesInvestingFinancialFirmAdviser Author:Sallie Krawcheck
“If top marginal income tax rates are set too high, they discourage productive economic activity. In the limit, a top marginal income tax rate of 100 percent would mean that taxpayers would gain nothing from working harder or investing more. In contrast, a higher top marginal rate on consumption would actually encourage savings and investment. A top marginal consumption tax rate of 100 percent would simply mean that if a wealthy family spent an extra dollar, it would also owe an additional dollar of tax.” IfsMeanEconomicHigherActivityLimitsTaxesPercentGainsHarderDollarsInvestmentRateInvestingIncomeSavingExtrasProductiveWealthyContrastConsumptionTaxpayersSavingsDiscouragingIncome TaxSavings And Investment Author:Robert H. Frank