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No. of Recommendations: 38
I copied the following from the "Vanguard Diehards" board on Morningstar. The compiler of the quotes is a gentleman named Taylor Larimore:

Hi Diehards:
I received a request from author, Michael LeBoeuf, for some quotes on
indexing from expert sources. Here's what I sent him:

Bill Bernstein: "Through hard experience I've found that it's almost alwaysa bad idea to fall in love with an active manager and abandon an indexed approach."

Charles Schwab: "Only about one out of four equity funds outperforms the
stock market. That's why I'm a firm believer in the power of indexing."

Benjamin Graham: "I am no longer an advocate of elaborate techniques of
security analysis in order to find superior value opportunities. I doubt
whether such extensive efforts will generate sufficiently superior selections to justify their cost. I'm on the side of the 'efficient market' school of thought."

Paul Samuelson, Noble Laurete: "The most efficient way to diversify a
stock portfolio is with a low fee index fund. Statistically, a boradly based stock index fund will outperform most actively-managed equity portfolios."

Jane Bryant Quinn: "Indexing is for winners only."

Rex Sinquefield: "The only consistent superior performer is the market
itself, and the only way to capture that superior consistency is to invest in a properly diversified portfolio of index funds."

Jack Bogle: "In the world of investing, there are very, very few sure things. But the closest thing to a sure thing is that the Wilshire 5000 index will outperform actively-managed funds by 1.5 to 2 percentage points a year over a sustained period."

Jack Bogle: "Of 355 stock funds in existence 30 years ago, 189 failed
even to survive. And only 14-- roughly one in 25--beat the return of the
stock market as a whole by as much as a percentage point a year on
average."

Jonathan Clements: "As a group, investors in U.S. stocks can't outperform the market because, collectively, they are the market. In fact, once you figure in investment costs, active investors are destined to lag behind Wilshire 5000-index funds, because these active investors incur far higher investment costs."

Robert Arnott: "There can be no question that indexng, for most categories of taxable investor and for most market conditions, will outperform conventional active management."

Douglas Dial: "Indexing is a marvelous technique. I wasn't a true believer. I was just an ignoramus. Now I am a convert. Indexing is an extroardinarily sophisticated thing to do."

Eric Tyson: "Why waste your time trying to select and manage a portfolio
of individual stocks when you can replicate the market average returns
(and beat the majority of profesional money managers) through in exceptionally underrated and underused investment fund call an index
fund?"

'Consumer Reports' (3-98): "Without high-priced market wizards to
manage them, the index funds have outperformed 97% of actively
managed funds in each of the last three years."

Warren Buffet: "Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals."

Burton Malkiel: "Over the past 30 years, a $10,000 investment in the S&P
500 index would have grown to $311,000 (after expenses); in the average
general equity fund the same investment would have grown to $17l,950."

Forbes (6-14-99): "According to data from Morningstar, Inc., foreign
index funds handily beat their actively-managed counterpares in the past
one, three, and five years."

Morningstar Q&A (6-3-99):
Question: "How many U.S. diversified equity funds have beaten the S&P
500 during the past five years AND have been less volatile than the index?
Answer: "Three funds that are open to new investors carry better five-year returns and lower standard deviations. None of these funds outlegs the index on an aftertax basis."

Jason Zweig: "Over the long term the superiority of indexing is a
mathematical certainty."

Wm. Sharpe, Nobel Laurete: "I love index funds."

Fortune 3-15-99: "Fewer than 20% of all equity funds outperformed the
unmanaged S&P 500 index in the past year. The percentage drops to
11% over ten years and to 4% over a 15 year stretch."

Your Money (06-97): "Only three out of 25 brokerage houses surveyed
by the 'Wall Street Journal' have beaten the market over the past five
years."
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