Step 3: Stock Pickers “Active management is little more than a gigantic con game.” – Ron Ross, Ph.D. , The Unbeatable Market, 2002
“By day we write about ‘Six Funds to Buy NOW!’… By night we invest in sensible index funds. Unfortunately, pro-index fund stories don’t sell magazines.” – Anonymous, Fortune Magazine, 1999
“If there are 10,000 people looking at the stocks and trying to pick winners, well, one in 10,000 is going to score, by chance alone, a great coup, and that’s all that’s going on. It’s a game, it’s a chance operation, and people think they are doing something purposeful… but they’re really not.” – Merton Miller, Ph.D., Nobel Laureate in Economics, 1990, PBS Nova Special, “The Trillion Dollar Bet,” 2000
“Very little evidence [was found] that any individual [mutual] fund was able to do significantly better than that which we expected from mere random chance.” – Michael Jensen, Ph.D., “The Performance of Mutual Funds in the Period 1945-1964,” Journal of Finance, 1968
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...