The Greatest Financial Minds Advocate Index Investing

Google wanted to prepare their staff for personal investing. They brought these great financial minds to advise

Burton Malkiel A Random Walk Down Wall Street

Malkiel is the chief investment officer of Wealthfront, Professor of economics at Princeton, and serves on the advisory board of Rebalance IRA. Malkiel supports investing in index funds as the most effective portfolio-management strategy. In his famous book, A Random Walk Down Wall Street, Malkiel argues that one cannot consistently outperform market averages.

Malkiel has shown that each year more than two-thirds of professional portfolio managers are outperformed by the S&P 500 Index. He also shows that there is little correlation between those who outperform the market on a given year, and those who do so on the next...

John Bogle, Vanguard’s founder, index fund pioneer

In 1976 Bogle introduced the first index fund, the Vanguard 500. In 1999, Fortune Magazine named Bogle one of the four "investment giants" of the twentieth century. Bogle actively promotes low-cost index investing to this day.

Bogle explains why index funds are the way to go: "Don't look for the needle. Buy the haystack. Index fuds eliminate the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains." 

William Sharpe, Nobel Laureate, Stanford Professor

William F. Sharpe is a Nobel Laureate and Professor of Finance, Emeritus, at Stanford University.

Sharpe advocates diversification through index funds. Sharpe suggests not to seek stock picking advice from gurus. Instead, he advocates index investing.

“In the long run this boring approach can give you more time for more interesting activities such as music, art, literature, sports, and so on. And it very well may leave you with more money as well.“