9 Quotes by David F. Swensen

When you look at the results on an after-fee, after-tax basis over reasonably long periods of time, there’s almost no chance that you end up beating the index fund.

Don’t let what other people say disturb your mind. Be happy.

Most active mutual funds are more interested in collecting fees than in boosting returns for investors.

Never underestimate the gullibility of large pools of money.

Unless an investor has access to ‘incredibly high-qualified professionals,’ they should be 100 percent passive – that includes almost all individual investors and most institutional investors.

I’ve always viewed high-frequency trading as a tax on the rest of us.

I think regular Iowans are cynical of this whole idea of corporate welfare, with the biggest awards going to the most profitable companies. It doesn’t make sense.

In fact, wealth-maximizing individuals compare the after-tax costs of debt with the after-tax returns from bonds, liquidating bond positions to pay off loans when the costs of debt exceed the returns from bonds. Rational investors consider liability positions when making asset allocations.

Supremely rational investors take the further step of acting against consensus, rebalancing to long-term portfolio targets by buying the out-of-favor and selling the in-vogue.