Customer Quote by Richard H. Thaler
““professional money managers perform no better than simple market averages,””
About This Quote
Source Book: Nudge, Richard H. Thaler & Cass R. Sunstein, 2008
Simple market averages match professional managers' returns, highlighting inefficiency of active management.
In simple terms: Market averages beat most managers.
Prefer low‑cost index funds.
Themes
Mood
Type
When to use this quote
- personal retirement planning
- portfolio construction
- financial advising
Key Concepts
Questions to Reflect On
- Can you identify situations where active strategies outperform?
- What costs are hidden in active management?
Active management may add value in niche markets or during extreme volatility.