Festival of Frugality #247 – Passive Index Investing Edition

“A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money” – Warren Buffett 

“Every time that I do it [write a new version of his book, A Random Walk Down Wall Street], I find it’s always two thirds of active [money] managers who are beaten by a simple index that does nothing but buys and holds all the stocks.” – Burton Malkiel  

“Individual stock brokers pay almost no attention to the returns their clients earn. It is rare to come across one who routinely calculates his clients’ annual returns” – William Bernstein, Author of the Intelligent Asset Allocator

“Past performance [of mutual funds] is not a predictor of future performance. In 1998, fewer than 20% of all equity funds outperformed the S&P500 Index. That figured drops to 11% over the previous 10 years and to just 4% over the previous 15 years.” – Larry Swedroe, Author of What Wall Street Doesn’t Want You to Know