Step 2: Nobel Laureates “We next consider the rule that the investor does [or should] consider expected return a desirable thing and variance of return an undesirable thing.” – Harry Markowitz, Ph.D., Nobel Laureate in Economics, 1990, “Portfolio Selection,” 1952
“Markets are efficient, but there are different dimensions of risk and those lead to different dimensions of expected returns. That’s what people should be concerned with in their investment decisions and not with whether they can pick stocks.” – Eugene Fama, Ph.D., Nobel Laureate in Economics, 2013 ChicagoBooth Magazine, Fall, 2013
“… Any pension fund manager who doesn’t have the vast majority—and I mean 70% or 80% of his or her portfolio—in passive investments is guilty of malfeasance, nonfeasance or some other kind of bad feasance!” – Merton Miller, Ph.D., Nobel Laureate in Economics, 1990, “Investment Gurus,” Peter Tanous, February 1997
“Properly measured, the average actively managed dollar must underperform the average passively managed dollar, net of costs.” – William F. Sharpe, Ph.D., Nobel Laureate in Economics, 1990, “The Arithmetic of Active Management,” 1991
Published on Jun 1, 2015
This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...