Index Funds

“They score you, but they score you with a black box. They don't tell you how they score you. Right. And guess how you can learn more. You hire them. So they get paid on both sides, and it's just, it's more of a heist, I think, than anything else.”

“The more you're just buying the market, and the more you're buying the market, the less interested you should be in paying fees. You should pay fees when it's more concentrated and thus uncorrelated with the market.”

“There's gonna be lots of funds that you can be in that will outperform in fits and starts, but if you wanna be the, in the upper decile, After 40 years, then it turns out owning the market with no fees is an almost surefire way to do it.”

“At times we will do small deviations from the index where we see that we can recover value for our shareholders. Maybe there's a corporate action. Maybe you could take cash or shares. We're going to take the one that has the greater value. Maybe the index trea…”

“The minute a company comes public, it belongs in an index fund. We've had that belief for a long time. You might need a few days for it to get trading and figure out price discovery. Our best indexes add those securities in day three or day five.”

“There's going to be less supply and you think of shares, right? And then the demand for shares will have much less to do with like a specific thesis They will be like, yeah, you kind of have to buy it because it's huge, right? Like if you're indexing a bunch o…”

“They dollar cost average into index funds, and they haven't sold anything for 40 years, ever. And if you compared their returns to professional fund managers, they're literally not, it's beyond top one percent. It's probably top .1% at this point that they've …”

“I bet over the course of a lifetime, not in any given year, but over a lifetime, if you compared it to someone whose finances were very complicated and had all kinds of transactions, not only would I be likely to match those, but probably exceed them.”

“I dollar cost average index funds.”

“Whenever it skews towards the passive, what happens is that, that creates arbitrage opportunities for the active. If the herd really kind of starts to move the stocks in a certain direction, the active manager should step in and take advantage of that arbitrag…”

“And for that person, if you can convince them to say, Hey, can we put 80% of your money in index funds? And then this 20%, you can go nuts with, you can trade shit coins. You can go crazy. You can do anything you want with it. That, that is, it seems like bad …”

“That also doesn't mean like go all in on like index funds, which I think is also very risky.”

“It's really important to know that it's a consistently underperforming asset class. Like you will make less money doing angel investing than putting your money in an index fund or almost any other kind of equity investment by and large.”

“My investing strategy is To own index funds for as long as I possibly can. To be average for an above average period of time. And I think that will actually lead to an incredible outcome. Not only will it achieve the financial goals that I have for my family, …”

“Or even from 2000 to 2010, you had basically zero percent real returns in index funds.”

“I'm trying to think of what, like, the percentage-wise, it's probably something like, 15 to 20% cash, the house that I live in, and then the rest the rest index funds, and shares of Markel, where I'm on the board of directors. And that's it. Those are my only …”

“It's always going to be the case that a very small number of stocks account for the majority of returns. So recently it's been Fang plus Nvidia. If you didn't own those stocks, Fang plus Nvidia over the last decade, your odds of outperforming are very, very lo…”

“It's great to watch it grow in your index funds, but it is not a major driver of wealth. It's more of a way to maintain wealth or to grow wealth, but not to actually make wealth.”

“And I also know that if I can be an index fund investor for 50 years, I will probably end up in the top two percent of all investors who are doing this, particularly after fees, after taxes, transaction costs, top two percent.”

“And I mean, I believe I mean, if someone is doing angel investments for making money, I think it's a much more expensive way to do versus putting something in just the index funds and letting market do the job.”

“I tell people if you're going to be the kind of person who Every time, you know, there's a bear market, you're like, oh my gosh, I guess I better sell everything. It's all dropping just buy index funds or let someone else do it for you. Cause you don't hav…”

“Stocks kicked out of an index, in the short run, it underperforms. There's a lot of people that have to sell it, nobody that has to buy it. But I would argue that over a longer period of time, it's those stocks that don't make it into the index that are actual…”

“The majority of my, you know, personal holdings is, is still standard, you know, index funds that, that are pretty vanilla, the low cost index funds, you know, the Vanguard way”

“So I think my general takeaway is that if the central banks stay on the sidelines, Individual stock picking reins and active management can win if they continue to be involved and do quantitative easing and all of this other stuff. Index funds that are long co…”

“There hasn't been as much demand for people that want to buy index funds in crypto. People want to pick tokens and catch the next a hundred X.”

“Hey, take a little bit, put it in the market, boring Vanguard funds, do this stuff. Of course they haven't read my book, do this stuff in the book. And when you do that, you will be wealthier than you can possibly imagine. And you, your risk will be decreased …”

“Nobody wants to take a small base and let it compound for 20 years, or very few people do, and that's the issue there.”

“Also the data shows that an index fund like a Nifty would beat property you know, historically also, even if you see right from our parents age also, you know, if you had invested in stocks versus property, it would beat.”

“The amount of debt that by debt, I mean, you know, fixed deposits or even mutual funds for debts and so on and so forth, or liquid funds, the amount of debt in portfolio should be a function of your annual expenses again. So I see some people do, you know, 20%…”

“Almost all academic research says that you know, actively managed funds return even worse than index funds.”

“And even if, when it comes to VC funds, I think the median VC funds returns worse than index funds. That's what research has showed.”

“If the committee is going to hire and fire our active managers, if there's not going to be patience and the understanding of alpha cyclicality, they're better off in an index fund.”

“What I do is I buy index funds and then forget about them.”

“Having index funds as major holders of securities in stable market conditions actually reduces the liquidity of companies, and it means that sort of hedge funds and more active investors who are making day-to-day buy and sell decisions actually push securities…”

“I have always thought that index funds are a terrific tool for most investors. And I say most because most investors do not know why they might be beating the market. And you have this wonderful opportunity to just join the market. And pay next to nothing for …”

“My hunch is that there's still a very large universe of dollars that should be a natural audience for index funds in the US, but are still in some more active strategy, mostly Owing to that history and tradition, and less the conscious decision that a low cost…”

“I think that the US market for index funds is actually quite different from most other markets around the world in that, say the S&P 500 is very diverse with a lot of global leading companies. If you were to look in, say, emerging markets, there are a lot of c…”

“In aggregate of all the people going through the effort, is it worth it? No. Because we know that after fees, in aggregate, it's gonna be a negative return relative to the index, if you will.”

“I think that you should divide the investing universe into like sensible things and ridiculous things. And like, you can do ridiculous things and like ridiculous things, like most things, sensible things, like index funds, right? You want to do like hedge fund…”

“Only 35% of people are buying indexes.”

“If you would like to be sure that you're a top quartile manager chooser, all you have to do is choose index funds, and the chances are you'll be the top half of the top quartile. We're sure to be in the top quartile. Long run.”

“What do you do with your own investing? Oh, I've got two kinds of investment. One is index funds, which I'm so happy with, just really comfortable with. And the second is an index fund equivalent in many ways, Berkshire Hathaway.”

“First, if you have 30% of the value of the market indexed, That's not 30% of the trading activity. It's a much smaller fraction.”

“The way it started is an index fund. It's a basket of the top 15 crypto assets, weighted by their market cap, and rebalanced every two weeks with a flat fee, and we don't charge a carry.”

“Index funds by definition are price takers. And what we don't fully know is what happens if We ever have a bear market and index funds have to sell.”

“And by the way, global diversification through index funds is a fake diversification. Index funds and ETFs are often calculated on a cap-weighted basis, which is a fundamentally flawed way to calculate indices.”

“Well, I don't believe that because there's been a lot of flows in the past that all these stocks are overvalued. They're structurally overvalued and people are gonna lose money because they're buying at a high. I don't believe in that general narrative, to be …”

“And then, of course, I would say, and probably most of us should implement using index funds.”

“Jim Cramer's last book, the first, this is a change in religion for him. The first thing he says is the first money you accumulate in the market should be in an index fund.”

“How I invest is basically every month I dollar cost average into index funds. So that's my, that's the core of it. And then on top of that rarely, but it is a portion of my portfolio when I come across an individual stock that is attractive to me for whatever …”