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Market risk is like taking a plunge into a cool pool ... a lot of people are finding out right now what their risk tolerance is.

William J. Bernstein

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William J. Bernstein
Age: 76
Born: 1948
Born: January 1
Author
Chemist
Economist
Neurologist
Writer
Right
Pool
Like
Tolerance
People
Findings
Finding
Cool
Market
Taking
Risk
Plunge

More quotes by William J. Bernstein

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The definition of investment is the deferring ofpresent consumption for future consumption. So, you dohave to be willing to defer. And there are a couple of tricks that you can use to save money. One of them is simply to pay yourself first.
William J. Bernstein
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For the taxable investor, indexing means never having to say you're sorry.
William J. Bernstein
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No one in his right mind would walk into the cockpit of an airplane and try to fly it, or into an operating theater and open a belly. And yet they think nothing of managing their retirement assets. I've done all three, and I'm here to tell you that managing money is, in its most critical elements even more demanding than the first two.
William J. Bernstein
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Bluntly put, there's no chance that your doctor, dentist, or attorney is a high-school dropout. Your stockbroker, however, just might be.
William J. Bernstein
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It's human nature to find patterns where there are none and to find skill where luck is a more likely explanation (particularly if you're the lucky manager).
William J. Bernstein
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Wall Street is littered with the bones of those who knew just what to do, but could not bring themselves to do it.
William J. Bernstein
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You have to understand what market history looks like. What market history tells you is that the very, very best investments are made when things look the worst.
William J. Bernstein
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The deeper one delves, the worse things look for actively managed funds.
William J. Bernstein
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Do the math. Expect catastrophes. Whatever happens, stay the course.
William J. Bernstein
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The essence of effective portfolio construction is the use of a large number of poorly correlated assets.
William J. Bernstein
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Mutual fund manager performance does not persist and the return of stock picking is zero.
William J. Bernstein
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There are two kinds of investors, be they large or small: those who don't know where the market is headed and those who don't know what they don't know. Then again, there is a third type of investor: the investment professional, who indeed knows he doesn't know, but whose livelihood depends upon appearing to know.
William J. Bernstein
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The reason that 'guru' is such a popular word is because 'charlatan' is so hard to spell.
William J. Bernstein
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The key thing about any fund is to make sure its expenses are low. You know, if you look at the funds in your plan and you see that they're all charging 1.5 and 2 percent,you've gota bad plan.
William J. Bernstein
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If your broker or investment advisor is not familiar with the concept of standard deviation of returns, get a new one.
William J. Bernstein
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There are two kinds of investors, be thay large or small: those who don't know where the market is headed, and those who don't know that they don't know.
William J. Bernstein
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All the things that make us human make us terrible investors and you have to understand what they are and how to avoid them.
William J. Bernstein
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The typical fund company services 401k plan participants in the same way that Baby Face Nelson serviced banks.
William J. Bernstein
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When it comes to fund managers and market strategists, this year's hero usually turns into next year's zero.
William J. Bernstein
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It's bad enough that you have to take market risk. Only a fool takes on the additional risk of doing yet more damage by failing to diversify properly with his or her nest egg. Avoid the problem-buy a well-run index fund and own the whole market.
William J. Bernstein