Bears Quote by Charlie Munger
“All the equity investors, in total, will surely bear a performance disadvantage per annum equal to the total croupiers' costs they have jointly elected to bear. This is an inescapable fact of life. And it is also inescapable that exactly half of the investors will get a result below the median result after the croupiers' take, which median result may well be somewhere between unexciting and lousy.”
About This Quote
Source Speech: Annual Shareholder Meeting, 1995
Investors inevitably pay fees that reduce returns, and about half will underperform the median after those costs.
In simple terms: Fees cut returns; half underperform median.
Key Takeaway
Expect drag from fees.
Themes
investment
fees
performance
statistics
Mood
cautious
realistic
Type
analytical
advisory
When to use this quote
- portfolio management
- retirement planning
- mutual fund selection
- fee analysis
Key Concepts
cost of capital
median
distribution
Questions to Reflect On
- How can you minimize fee impact?
- What alternatives reduce cost?
A Different Perspective
Fees may not be the only source of underperformance.
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