Collin County Living Well Magazine November/December 2017 | Page 40

The Intelligent Investor
“Learn every day, but especially from the experiences of others. It’s cheaper!” — John C. Bogle
What Experts Say About Total Marker Index Funds
Baer & Ginsler study: “The returns of actively managed funds were 20 to 25% more volatile than the broad market.”
Christine Benz, Morningstar Director of Personal Finance: “The no-brainer holdings if you have taxable accounts are broad-
market index funds.”
Bill Bernstein: “If you own VTSMX with a bit of foreign and REIT, mixed with your bonds, you’re most of the way there.”
Jack Bogle: “The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and
you eliminate manager risk. -- In my view, owning the market and holding it forever is the ultimate strategy for winners.”
Peter Brimlow, former senior editor of Forbes: “It’s extremely difficult to beat the market.”
Scott Burns, columnist, author: “The odd are really, really poor than any of us will do better than a low-cost broad index fund.”
Andrew Clarke, co-author of Wealth of Experience: “If your stock portfolio looks very different from the broad stock market,
you’re assuming additional risk that may, or may not, pay off.”
John Cochrane, President American Finance Association: “The market in aggregate always gets the allocation of capital
right.”
Jonathan Clements, author and Wall Street Journal columnist: “If you want a surefire strategy for outpacing most other U.S.
stock investors, simply shovel money into an index fund that tracks a broad U.S. market index such as the Wilshire 5000 or
the Russell 3000.”
Jim Dahle, adviser and author of The White Coat Investor: When interviewing potential advisers, one of the first questions I
would ask is: “Can you beat the market yourself or choose mutual fund managers who can?” If the answer is “yes”, stand up
and walk out.”
Dalbar Research: “In 2014, the average investor in a stock mutual fund underperformed the S&P 500 by a margin of 8.19
percent. Fixed-income investors underperformed the Barclays Aggregate Bond Index by a margin of 4.81 percent.”
Charles Ellis, author of “The Loser’s Game”: “Most of the managers and clients who insist on trying to beat the market, either
on their own or with professional managers, will be disappointed by the results. It is a loser’s game.”
Edesess . Tsui . Fabbri . Peacock, authors of The Three Simple Rules of Investing: “The end results of the theories of Nobel
Laureates in finance is that the most efficient portfolio is one that mirrors the whole market, a total market index fund.”
Prof. Eugene Fama, Nobel Laureate: “For most people, the market portfolio is the most sensible decision.”
Paul Farrell, author of The Lazy Person’s Guide to Investing: “The market is totally random, irrational, and unpredictable. And
it loves humbling the mighty. Try to beat it and you’ll lose money.”
Rick Ferri, advisor and author of many financial books: “When you are finished choosing a bond index fund, a total U.S.
stock market index fund, and a broad international index fund, you will have a very simple, yet complete portfolio.”
Bob French, CFA, McLean’s Director of Investment Analysis: “You can’t beat the market. It’s basically impossible to guess
which company is going to be the next Apple or Google, or even which way the market will go. So don’t try.”