Do not trust historical data—especially recent data—to estimate the future returns of stocks and bonds. Instead, rely on interest and dividend payouts and their growth/failure rates. - William J. Bernstein
Only an income-producing possession, such as a stock, bond, or working piece of real estate is a true investment. - William J. Bernstein
Market history shows that when there’s economic blue sky, future returns are low, and when the economy is on the skids, future returns are high. - William J. Bernstein
If you can understand the chapter’s central point—that the value of a stock or a bond is simply the present value of its future income stream—then you will have a better grasp of the investment process than most professionals. - William J. Bernstein
Although the modern image of the imperial city is dominated by the ruins of the Coliseum and the Forum, the economic life of ancient Rome centered on side streets filled with apartments, shops, and horrea. - William J. Bernstein
Ideally, a fine painting, like a house, is neither a speculation nor an investment; it is a purchase. Its value consists solely of the pleasure and utility it provides now and in the future. The dividend the painting provides is of the non-financial variety. - William J. Bernstein