Bases Quote 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.”
About This Quote
Source Book: Unconventional Success, 2005
Over long periods, actively managed portfolios rarely outperform low‑cost index funds after fees and taxes.
In simple terms: Index funds usually beat active managers after costs.
Key Takeaway
Prefer low‑cost index investing.
Themes
finance
investment
efficiency
Mood
practical
cautious
Type
financial
advice
When to use this quote
- retirement planning
- personal finance
- wealth building
Key Concepts
portfolio theory
tax efficiency
cost management
Questions to Reflect On
- Are there scenarios where active funds add value?
- How can investors minimize fees?
A Different Perspective
Active management can succeed in niche markets.
