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 "None of my clients are taxable... Once you introduce taxes, active management probably has an insurmountable hurdle. We've been asked to manage taxable money -- and declined" |
| "If you can eliminate the government as a 39.6% partner, then you will be much better off." |
 "The miracle of compounding returns is overwhelmed by the tyranny of compounding costs" |
| "Managed funds are astonishingly tax-inefficient." |
| "It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it." |
| "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. I think it's disgusting. It's much better to be part of a system that delivers value to the people who buy the product." |
| "Market-cap based indexing will never be driven from its deserved perch as core and deserved king of the investment world. It is what we should all own in theory and it has delivered low-cost equity returns to a great mass of investors...the now and forever king-of-the-hill." |
 "The greatest Enemies of the Equity investor are Expenses and Emotions." |
| "Index funds are...tax friendly, allowing investors to defer the realization of capital gains or avoid them completely if the shares are later bequeathed. To the extent that the long-run uptrend in stock prices continues, switching from security to security involves realizing capital gains that are subject to tax. Taxes are a crucially important financial consideration because the earlier realization of capital gains will substantially reduce net returns. Index funds do not trade from security to security and, thus, they tend to avoid capital gains taxes." |
| "For the markets in total, the amount of value added, or alpha, must sum to zero. One person's positive alpha s someone else's negative alpha. Collectively, for the institutional, mutual fund, and private banking arenas, the aggregate alpha return will be zero or negative after transaction costs. Aggregate fees for the active managers should thus be, at most, the fees associated with passive management. Yet, these fees are several times larger than fees that would be associated with passive management. This illogical conundrum will ultimately have to end." |
 "Invest in low-turnover, passively managed index funds...and stay away from profit-driven investment management organizations... The mutual fund industry is a colossal failure... resulting from its systematic exploitation of individual investors...as funds extract enormous sums from investors in exchange for providing a shocking disservice..... Excessive management fees take their toll, and (manager) profits dominate fiduciary responsibility." |
| "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." |
 "Suppose it was demonstrated that one out of twenty alcoholics could learn to become a moderate social drinker. The experienced clinician would answer, 'Even if true, act as if it were false, for you will never identify that one in twenty, and in the attempt five in twenty will be ruined.' Investors should forsake the search for such tiny needles in huge haystacks." |
| “In these topsy-turvy days of volatile markets, who knows what's up or down? The Dow could be up 250 today, and down 300 tomorrow. It's a fool's game playing market direction, and every diehard index fund investor knows it." |
| <br /> "The miracle of compounding returns is overwhelmed by the tyranny of compounding costs" |
| "The multiple failings of our flawed financial sector are jeopardizing, not only the retirement security of our nation’s savers but the economy in which our entire society participates." |
| "It is very hard, if not impossible," he wrote in his study, "to justify active management for most individual, taxable investors, if their goal is to grow wealth." And he said that those who still insist on an actively managed fund are almost certainly "deluding themselves." |
| "For most investors, tax loss harvesting is one of the most important ways to reduce tax liability now and in the future." |
| "Fiduciaries should strongly consider index funds as an alternative to actively managed funds. Index funds incur about 80% less in transaction costs than actively managed funds…long-term returns for actively managed funds trail their respective indexes." |
| "Fiduciaries should strongly consider index funds as an alternative to actively managed funds. Index funds incur about 80% less in transaction costs than actively managed funds…long-term returns for actively managed funds trail their respective indexes." |
| "e;None of my clients are taxable... Once you introduce taxes, active management probably has an insurmountable hurdle. We've been asked to manage taxable money -- and declined."e; |
| It is difficult to get a man to understand something when his salary depends upon his not understanding it. |
| <em>“The typical fund company services [401k plan] participants in the same way that Baby Face Nelson serviced banks.” </em> |
| "Most active mutual funds are more interested in collecting fees than in boosting returns for investors." |
| "I¹ve always viewed high-frequency trading as a tax on the rest of us." |