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Quotes on Active Management

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Quote Authors

Arthur Rock, Benjamin Graham, Bernard Baruch, Charles Ellis, Charlie Munger, Chuck Akre, Daniel Kahneman, David Abrams, David Swensen, Dean LeBaron, Dean Williams, Edward Thorp, Edwin Lefevre, Fred Schwed Jr, Henry Singleton, Hetty Green, Howard Marks, Joel Greenblatt, John Bogle, John Kenneth Galbraith, John Maynard Keynes, John Stuart Mill, John Templeton, Lou Simpson, Marty Whitman, Meir Statman, Michael Price, Mohnish Pabrai, Myron Scholes, Paul Tudor Jones, Peter Bernstein, Peter Lynch, Philip Carret, Philip Fisher, Richard Thaler, Robert Kirby, Robert Shiller, Seth Klarman, Stanley Druckenmiller, T. Rowe Price, Walter Schloss, Warren Buffett,

“
The principle of "managed" investment trusts is absolutely sound, granted only one premise. The premise is that there are somewhere people of such experience and insight that they can predict with some sort of accuracy the future behavior of securities.
”

Fred Schwed Jr
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The mutual fund industry is not an investment management industry. It's a marketing industry.
”

David Swensen
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The more you trade, the harder it is to add value because you’re absorbing a lot of transaction costs, not to mention taxes.
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Lou Simpson
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You can only know so many companies. If you’re managing 50 or 100 positions, the chances that you can add value are much, much lower.
”

Lou Simpson
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I’m looking for somebody that’s got a screw loose and they define winning not by being as rich as they can be individually, but by producing great investment returns.
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David Swensen
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Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.
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John Maynard Keynes
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If some of the most astute people in Wall Street have frequently guessed wrong in trying to profit by stock market movements, it may not be too much to assume that the attempt itself has represented a misconception of the proper function of management.
”

Philip Carret
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Common stocks properly selected and long-range will prove so attractive that I don't believe that other forms of assets are a more attractive or suitable vehicle.
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Philip Fisher
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Don't think for a moment that small investors are the only ones guilty of too much attention to the rear-view mirror.
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Warren Buffett
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Beating the market averages, after paying substantial costs and fees, is an against-the-odds game; yet a few people can do it, particularly those who view it as a game full of craziness with an occasional mispriced something or other.
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Charlie Munger
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If you are not a professional investor, if your goal is not to manage money in such a way so you get a significantly better return than the world, then I believe in extreme diversification.
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Warren Buffett
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I think there’s a tendency in the modern world of people wanting their money to be working hard, and I joke that our money is like a couch potato by comparison.
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Seth Klarman
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The first thing I heard when I got in the business, not from my mentor, was bulls make money, bears make money, and pigs get slaughtered. I'm here to tell you I was a pig. And I strongly believe the only way to make long-term returns in our business that are superior is by being a pig.
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Stanley Druckenmiller
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I am convinced that an individual investor with sound principles, and soundly advised, can do distinctly better over the long pull than a large institution.
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Benjamin Graham
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The laws of probabilities tell us that almost anyone can achieve phenomenal success over any given measurement period. It is the task of those evaluating a money manager to ascertain how much of past success is due to luck and how much to skill.
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Seth Klarman
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In my experience, large increases in assets under management adversely affect returns.
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Seth Klarman
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I think it would be an interesting change for integrity if managers of funds were required to have more of their own money in them.
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Seth Klarman
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Managers do not create large alphas by being conventional. They do so by taking the risk of being wrong and alone.
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Peter Bernstein
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Mutual fund managers, desperate to put cash to work don't buy what is cheap but what is working since what is cheap by definition hasn't been working.
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Seth Klarman
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I like the idea of having a little action. That may not be good from a logical point of view, but it's good from an emotional point of view.
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Walter Schloss
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A lot of mutual fund managers don't know what they own. The odds are the best they have ever been for the individual.
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Peter Lynch
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The market at this point is institutional and we all act like a herd.
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Peter Lynch
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All you have to do, really, is find the best hundred stocks in the S&P 500 and find another few hundred outside the S&P 500, to beat the market.
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Peter Lynch
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When I ran Magellan Fund, the market had 9 declines of 10 percent or more in those 13 years. I had a perfect record. All 9 times, my fund went down.
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Peter Lynch
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If your preference is managed funds, you want a managed fund that, one might put it, is like a sailboat fighting not a typhoon of costs but only a breeze.
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John Bogle
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On average, the average large-stock fund manager produces average returns before fees and below-average returns after fees. So compared with after-fee returns, an index fund is superior.
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Howard Marks
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There are two requirements for success in Wall Street. One, you have to think correctly; and secondly, you have to think independently.
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Benjamin Graham
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If all that can be promised is an average result, how can managers expect to be paid large fees for providing that average result?
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Benjamin Graham
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The idea of indexing isn't something I believe in or would follow.
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Henry Singleton
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Beating the market averages, after paying substantial costs and fees, is an against-the-odds game; yet a few people can do it, particularly those who view it as a game full of craziness with an occasional mispriced something or other.
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Charlie Munger
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Contrary to their oft-articulated goal of outperforming the market averages, investment managers are not beating the market: The market is beating them.
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Charles Ellis
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It may be that professionally managed funds are too large a part of the total picture to be able to outperform the market as a whole; it may also be true, as I suspect, that certain weaknesses in their basic principles of stock selection tend to offset the superior training, intelligence, and effort that they bring to this task.
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Benjamin Graham
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