More Quotes about the Effectiveness of Index Funds

Here are some more quotes from the wonderful book The Bogleheads' Guide to Investing (I LOVED the book -- see my rating for details) on the effectiveness of index funds:

• "The fund industry's dirty little secret: Most actively managed funds never do as well as their benchmark." Arthur Levitt, former chairman of the Securities and Exchange Commission

• "Only about one in four equity funds outperforms the stock market. That's why I'm a firm believer in the power of indexing." Charles Schwab, founder and chairman of the board of The Charles Schwab Corporation

• "Why waste your time trying to select and manage a portfolio of individual stocks when you can replicate the market average returns (and beat the majority of professional money managers) through an exceptionally underrated and underused investment fund called an index fund?" Eric Tyson, author of Investing for Dummies and Mutual Funds for Dummies

• "If you buy -- and then hold -- a total stock market index fund, it is mathematically certain you will outperform the vast majority of all other investors in the long run. Graham praised index funds as the best choice for individual investors, as does Warren Buffett." Jason Zweig, senior writer and columnist at Money magazine

Add these to the list of reasons why I like index funds.

For more thoughts on investing, see these links:

• Best of Free Money Finance: Investment Posts

• Take These Steps before You Start Investing

• Costs Matter If You Want to Maximize Investment Returns

• Why Asset Allocation is Important and Market Timing Doesn't Work