A portfolio of low-cost index funds is the best approach for a percentage of your investments because we don’t know what stocks will be “best” going forward.

A very low cost index fund where you don't put in all your money at one time ... If you accumulate a low cost index fund over 10 years ... with fairly regular sums, I think you will probably do better than 90% of the people around you that take up investing at a similar time.

fund offered by Vanguard. So if you can implement your investment with low-cost, passively managed indexed funds, you’re going to be a winner.

Index your important money, then go have fun,” Burton Malkiel told me. “It’s better than going to the racetrack.” But, he said, limit yourself to 5% or less of your total assets or portfolio.

The low-cost index funds or ETFs you choose will change the performance. It’s crucial to find the most efficient and cost-effective representations for each percentage.

If you invested in a low-cost index fund — where you don't put the money in at one time, but average in over 10 years — you'll do better than 90% of people who start investing at the same time.

What is the real goal?

The real goal is not to "beat the market." The goal is to build wealth.

The real goal is not to read more books. The goal is to understand what you read.

Don't let a proxy become the target. Don't optimize for the wrong outcome.

And, most experts agree, the ultimate diversification tool for individual investors is the low-fee index fund, which gives you the broadest exposure to the largest numbers of securities for the lowest cost.

It’s not possible for investors to consistently outperform the market. Therefore you’re best served investing in a diversified portfolio of low-cost index funds [or exchange-traded funds].

Asset allocation, where to park your money and how to divide it up, is the single most important skill of a successful investor. And as we will learn from the masters, it’s not that complicated! Low-cost TDFs might be great for the average investor, but you are not average if you are reading this book!

It is often said that a monkey could run an index fund. Nothing could be further fro the truth. Precisely tracking an index requires a very high degree of market savvy, discipline and nerve.

(even if the majority agree that low cost index funds are the main ingredients).

Indeed, the unsophisticated investor who is realistic about his shortcomings is likely to obtain better long-term results than the knowledgeable professional who is blind to even a single weakness.

When Walter and Edwin were asked in 1989 by Outstanding Investors Digest, “How would you summarize your approach?” Edwin replied, “We try to buy stocks cheap.” So much for Modern Portfolio Theory, technical analysis, macroeconomic thoughts and complex algorithms.