Step 4: Time Pickers “If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting what’s going to happen to the stock market.” – Benjamin Graham, Interview with Hartman L. Butler, “An Hour with Mr. Graham,” 1976
“Statistical research has shown that, to a close approximation, stock prices seem to follow a random walk with no discernible predictable patterns that investors can exploit. Such findings are now taken to be evidence of market efficiency… Only new information will move stock prices…” – Zvi Bodie, Investments, 2004
“Market timing is a wicked idea. Don’t try it—ever.” – Charles D. Ellis, Ph.D., Winning the Loser’s Game, 2002
“There are two kinds of investors, be they large or small: those who don’t know where the market is headed, and those who don’t know that they don’t know. Then again, there is a third type of investor… whose livelihood depends upon appearing to know.” – William Bernstein, Ph.D., M.D., The Intelligent Asset Allocator, 2000
This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...