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Active Quote by Warren Buffett

“The active investors will have their returns diminished by a far greater percentage than will their inactive brethren. That means that the passive group - the "know-nothings" - must win.” quote by Warren Buffett
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“The active investors will have their returns diminished by a far greater percentage than will their inactive brethren. That means that the passive group - the "know-nothings" - must win.”

Warren Buffett

About This Quote

Source Letter to shareholders, Berkshire Hathaway, 2018

Passive investors often outperform active ones, so the “know‑nothing” passive strategy should prevail.

In simple terms: Passive investing beats active.

Key Takeaway

Embrace passive investing.

Themes

finance investment behavioral economics

Mood

pragmatic optimistic

Type

financial advisory

When to use this quote

  • retirement planning
  • portfolio diversification
  • financial education

Key Concepts

market efficiency index funds behavioral bias

Questions to Reflect On

  • When might active management add value?
  • How do you balance passive and active exposure?
A Different Perspective

Passive strategies may underperform in niche markets or volatile periods.

3.2 out of 5 (3 ratings)

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