Larry E. Swedroe > Quotes

“Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed. It isn’t the head, but the stomach that determines [your] fate. —Peter Lynch, Beating the Street”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“A study of some nine hundred funds (either growth funds or growth and income funds) from 1988 to 1994 found that the returns posted by managers with degrees from universities whose entering students have high SAT scores—such as the Ivy League colleges—beat competitors from lower ranked schools by more than a full percentage point. Younger managers and M.B.A. holders also out-performed their older and non-M.B.A. rivals. The reason behind the superior performance was both simple and predictable. The researchers found that “high SAT” managers and those with M.B.A.s tended to invest in high-risk, high-return stocks! Sound familiar? You don’t need an M.B.A. and you don’t have to pay an active money manager large fees to generate superior returns. All you really need is a faith that markets work—that risks and returns are highly correlated.4”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“maturity”
― Larry E. Swedroe, The Only Guide to a Winning Bond Strategy You'll Ever Need: The Way Smart Money Preserves Wealth Today

“As author Nick Murray says: “Success is purely a function of two things: 1) recognition of the inevitability of major market declines; and 2) emotional/behavioral preparation to regard such declines as non-events.”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“I don't judge the quality of my decisions by the outcome”
― Larry E. Swedroe, The Incredible Shrinking Alpha: How to Be a Successful Investor Without Picking Winners

“financial and life goals. Over the years, I have talked to thousands of people about investing. I have”
― Larry Swedroe, Think, Act, and Invest Like Warren Buffett

“The efficient market hypothesis (EMH) explains this phenomenon: current market prices reflect the total knowledge and expectations of all investors, and it is highly unlikely that one investor can know more than the market does collectively. For”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“To know you have enough is to be rich. —The Tao Te Ching”
― Larry Swedroe, Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns With Less Volatility

“Markets compensate investors with expected returns commensurate with the degree of risk they take. By investing in asset classes that are higher risk, and therefore higher return, an investor can expect to outperform the market as a whole—while acknowledging that they are accepting greater risk. These higher risk, higher expected return asset classes are small-capitalization stocks, value stocks, and small-value stocks. An”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“investors and increase the chances of achieving your financial and life goals. Over the years, I have talked”
― Larry Swedroe, Think, Act, and Invest Like Warren Buffett

“Buffett knows that a down market is when investors should be buying, not selling.”
― Larry Swedroe, Think, Act, and Invest Like Warren Buffett

“While investing in equities always entails risk, the longer the investment horizon, the more likely it is that equity investors will be rewarded for taking incremental risk—assuming they have the ability to remain disciplined during periods of economic crisis. Disciplined investors think bear markets are really just periods when the market temporarily wears a big “for sale” sign. On”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“The only thing that hurts more than paying an income tax is not having to pay an income tax. —Lord Thomas R. Duwar”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“Wise Investing series is a collection of stories and analogies designed to demonstrate that the winning investment strategy is a simple, elegant,”
― Larry Swedroe, Think, Act, and Invest Like Warren Buffett

“Index funds generally buy and hold all the securities within a particular index in a market cap—weighted fashion. Thus while an S&P 500 Index fund would own all five hundred stocks that comprise the index, it would not own an equal amount of each of the five hundred stocks. The largest holding might, for example, be 5 percent of the entire portfolio. There”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“Today, the U.S. markets account for approximately 50 percent of the global equity markets total capitalization. Since”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“Rather than attempt to time the market or pick individual stocks, it is more productive to invest and stay invested. As Warren Buffett said: “We continue to make more money when snoring than when active.” Mr. Buffett also said: “Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after expenses and fees) delivered by the great majority of investment professionals.”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“The safest port in a sea of uncertainty is diversification.”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“Do you have the fortitude and discipline to stick with your predetermined investment strategy (asset allocation) when the going gets rough?” Successful investment management depends to a large degree on the ability of an individual to withstand the periods of stress and on his/her ability to overcome the severe emotional hurdles present during bear markets like the ones experienced in 1973–74 and 2000–02. In”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today

“Wise Investing series is a collection of stories and analogies designed to demonstrate that the winning”
― Larry Swedroe, Think, Act, and Invest Like Warren Buffett

“If an active manager has managed to beat the market, it is highly probable he/she invested in the high-return asset classes of small-cap, value, or small-value stocks. The”
― Larry E. Swedroe, The Only Guide to a Winning Investment Strategy You'll Ever Need: The Way Smart Money Invests Today