What Do the Nobel Prize Winners, Experts, PhD Economists, and CEOs Say About Index Funds?

Hello folks,

If you are new to index investing, you might be wondering what the experts think about these types of funds.

Maybe, someone on TikTok or YouTube was trying to convince you to spend $499 to enroll in their stock investing course. Before you do so, you may want to read the below quotes from the Nobel Prize Winners, Experts, PhD Economists, and CEOs.

"The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk...There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite." -Jack Bogle, Founder and CEO of Vanguard

"Investors shouldn't delude themselves about beating the market. They're just not going to do it. It's just not going to happen." -Daniel Kahneman, Nobel Laureate in Economics

"Wall Street's favorite scam is pretending luck is skill." -Ron Ross, PhD, Economist

"How far are they from the slide? If I get far enough away, I don’t see it either. Whether you decide to tilt… depends on whether you are willing to take the associated risk… The market portfolio is always efficient. For most people, the market portfolio is the most sensible decision." -Eugene Fama, Nobel Memorial Prize in Economic Sciences, Deutsche Bank Prize in Financial Economics

"A foolish attempt to beat the market and get rich quickly will make one's broker rich and oneself much less so." -Harry Markowitz, Nobel Memorial Prize in Economic Sciences, John von Neumann Theory Prize

"Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't." -Merton Miller, Nobel Memorial Prize in Economic Sciences

"The most efficient way to diversify a stock portfolio is with a low-fee index fund. Statistically, a broadly based stock index fund will outperform most actively managed equity portfolios." -Paul Samuelson, first American to win the Nobel Memorial Prize in Economic Sciences

"You may think your opinion is superior, but it pays to be humble, investing in the market rather than trying to beat it." -William Sharpe, Nobel Memorial Prize in Economic Sciences, UCLA Award, originator of the CAPM model and Sharpe ratio

"Never think you know more than the market. Realize that nobody knows what's going to happen tomorrow or in the future." -Jack Bogle, Founder and CEO of Vanguard

"There seems to be some perverse human characteristic that likes to make easy things difficult." -Warren Buffett

The financial experts are clear; low-cost, market-cap weighted index funds are sensible investments.

How can you get all of the battle-tested, tried and true knowledge as quickly as possible? I wrote a book explaining exactly this; it's short; it's cheap, and it's written in plain English. You can find it here: https://amzn.to/32PLB3x. You may also want to consider subscribing to this blog by entering your email on the homepage next to the “Never Miss a Post” section and following the podcast “Nondelusional Investing” wherever you get your podcasts.

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Disclaimer: The article above is an opinion and is for informational/educational purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. The author has taken care in writing this post but makes no expressed or implied warranty of any kind and assumes no responsibility for errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of the use of this information.