The Index Revolution Quotes

“When the New York City pension funds began investing in index funds in the mid-1970s, the New York Times, in an article entitled “Why Indexing Frightens Money Managers,” quoted Dave H. Williams, then chairman of the investment committee of Mitchell Hutchins & Company: “It’s an avenue for seeking mediocrity.”
― Charles D. Ellis, The Index Revolution: Why Investors Should Join It Now

“Faced with the choice of changing one’s mind versus proving that there is no need to do so, almost everyone opts for the latter.”
― Charles D. Ellis, The Index Revolution: Why Investors Should Join It Now

“Most institutional and individual investors will find the best way to own common stock is through an index fund that charges minimal fees. Those following this path are sure to beat the net results [after fees and expenses] delivered by the great majority of investment professionals.”1 —Warren Buffett, chairman of Berkshire Hathaway”
― Charles D. Ellis, The Index Revolution: Why Investors Should Join It Now

“And if you don’t believe me or even Charley, remember that Warren Buffett, perhaps the greatest investor of our time, has opined that all investors would be better off if their portfolio contained a diversified group of index funds.”
― Charles D. Ellis, The Index Revolution: Why Investors Should Join It Now

“When S&P measured performance over a longer time period, the results got worse. Over 80 percent of large-cap managers and almost 90 percent of small-cap managers underperformed their benchmark indexes over a ten-year period through December 2015.”
― Charles D. Ellis, The Index Revolution: Why Investors Should Join It Now

“Nor were managers any better in the supposedly less efficient, small-capitalization universe. Almost three-quarters of small-cap managers underperformed the S&P Small-Cap Index. When”
― Charles D. Ellis, The Index Revolution: Why Investors Should Join It Now

“Standard & Poor’s Dow Jones Indices published a statistical analysis in 2016 detailing the dismal record of “active” portfolio managers: As is typically the case, about two-thirds of active large-capitalization managers underperformed the S&P 500 large-cap index during 2015. Nor”
― Charles D. Ellis, The Index Revolution: Why Investors Should Join It Now