“So that the record of history is absolutely crystal clear that there is no alternative way, so far discovered, of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by a free-enterprise system.” PeopleWayGovernmentClearRecordsActivityOrdinaryCapitalismInvestingAlternativesEnterpriseProductiveCandleImprovingFree MarketOrdinary PeopleCrystalsTrue HappinessFree EnterpriseUnleashed Author:Milton Friedman
“There are a few investment managers, of course, who are very good - though in the short run, it's difficult to determine whether a great record is due to luck or talent. Most advisors, however, are far better at generating high fees than they are at generating high returns. In truth, their core competence is salesmanship. Rather than listen to their siren songs, investors - large and small - should instead read Jack Bogle's The Little Book of Common Sense Investing.” ShouldLittlesBookRunningSongCoursesDifficultCommonRecordsTalentReturnLuckInvestmentInvestingVery GoodDetermineDuesCoreCommon SenseManagersInvestorsCompetenceFeesSirensAdvisorsSalesmanshipSiren Song Author:Warren Buffett
“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.” PastChanceRecordsExamplePerformancesInvestingConvincedExpectedSuperiorsManagersFundMutualConsistentlyWorthlessPredictingFuture SuccessMutual FundSuperior Performance Author:Burton Malkiel
“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.” PeopleSchoolGivenAbilityNumbersRecordsProduceDependsInvestmentInvestingTrackProfitManagersTrack RecordDental Book:Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets Source: Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
“The record of a month's roulette playing at Monte Carlo can afford us material for discussing the foundations of knowledge.” RecordsMaterialsMonthsFoundationInvestingDiscussingRouletteMonte Carlo Author:Karl Pearson
“I have no use whatsoever for projections or forecasts. They create an illusion of apparent precision. The more meticulous they are, the more concerned you should be. We never look at projections, but we care very much about, and look very deeply at, track records. If a company has a lousy track record, but a very bright future, we will miss the opportunity.” IfsShouldLooksUseCareOpportunityCompanyRecordsMissingIllusionConcernedInvestingTrackProjectionPrecisionVery DeepForecastsTrack RecordBright FutureMeticulous Author:Warren Buffett
“Berkshire's whole record has been achieved without paying one ounce of attention to the efficient market theory in its hard form. And not one ounce of attention to the descendants of that idea, which came out of academic economics and went into corporate finance and morphed into such obscenities as the capital asset pricing model, which we also paid no attention to. I think you'd have to believe in the tooth fairy to believe that you could easily outperform the market by seven-percentage points per annum just by investing in high volatility stocks.” ThinkingBelieveHas BeensIdeasHardWholeFormAttentionRecordsTheoryModelsEconomicsPaidSevenInvestingTeethFinanceCorporateFairyAssetsAcademicEfficientPercentagesDescendantsObscenityPricingVolatilityTooth FairyEfficient Markets Author:Charlie Munger