Burton G. Malkiel
A blindfolded chimpanzee throwing darts at the stock pages can build a portfolio that matches expert performance, proving that low-cost index funds are the ultimate tool for capturing market returns.
Neither technical analysis of past price trends nor fundamental analysis of corporate earnings can consistently generate excess returns because current stock prices already absorb and reflect all known public information.
Investors will statistically achieve greater long-term wealth by purchasing passively managed, broad-based index funds instead of paying high advisory fees for actively managed mutual funds.
Because higher investment returns strictly require accepting greater systemic risk, broad diversification across different asset classes is essential to smooth out the inherent volatility of individual companies.