Quotes on Index Funds

Passive management does not give investors the return of the index; it gives them the return of the index less costs. So, the longer they have their money passively managed, the greater their underperformance will be relative to the index.

Investing is a funny business. It's really easy to be average. Just buy an index fund. It's really hard to be above average.

An investor is not likely to obtain superior results by buying a broad cross-section of the market. The more diversification, the more performance is likely to be average, at best.

I am much more inclined to buy a stock that has been kicked out of an index because then it may have value characteristics -- it has underperformed.

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.

The idea of indexing isn't something I believe in or would follow.