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.”
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.
Embrace passive investing.
Themes
Mood
Type
When to use this quote
- retirement planning
- portfolio diversification
- financial education
Key Concepts
Questions to Reflect On
- When might active management add value?
- How do you balance passive and active exposure?
Passive strategies may underperform in niche markets or volatile periods.