I see the supposed convenience of being... by William J. Bernstein | We Heart Quotes

I see the supposed convenience of being able to trade ETFs throughout the day as a psychological disadvantage. Unless you are able to predict intraday market moves—a fool’s errand if ever there was one—you are faced with the oftentimes paralyzing choice of exactly when to buy or sell.

- William J. Bernstein

Other quotes by William J. Bernstein

First, we invest now so that we may spend later. In fact, this is the essence of investing: the forbearance of immediate spending in exchange for future income. Because of the mathematics of compound interest, spending even a tiny fraction on a regular basis devastates final wealth over the long haul.

- William J. Bernstein

The reason that 'guru' is such a popular word is because 'charlatan' is so hard to spell.

- William J. Bernstein

It’s human nature to find patterns where there are none and to find skill where luck is a more likely explanation.

- William J. Bernstein

An index fund dooms you to mediocrity? Absolutely not: It virtually guarantees you superior performance.

- William J. Bernstein

Would you believe me if I told you that there’s an investment strategy that a seven-year-old could understand, will take you fifteen minutes of work per year, outperform 90 percent of finance professionals in the long run, and make you a millionaire over time? Well, it is true, and here it is: Start by saving 15 percent of your salary at age 25 into a 401(k) plan, an IRA, or a taxable account (or all three). Put equal amounts of that 15 percent into just three different mutual funds: A U.S. total stock market index fund An international total stock market index fund A U.S. total bond market index fund. Over time, the three funds will grow at different rates, so once per year you’ll adjust their amounts so that they’re again equal. (That’s the fifteen minutes per year, assuming you’ve enrolled in an automatic savings plan.) That’s it; if you can follow this simple recipe throughout your working career, you will almost certainly beat out most professional investors. More importantly, you’ll likely accumulate enough savings to retire comfortably.

- William J. Bernstein

Although you should not let your emotional responses dictate your allocation, you do need to sleep at night, and your personal preferences are an important part of your asset class structure.

- William J. Bernstein

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