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In a winner’s game, the outcome is determined by the correct actions of the winner.

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 262

Instead of trying to add power to our serve or hit closer to the line to win, we should concentrate on consistently getting the ball back so the other player has “every opportunity” to make a mistake.

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 274

In theory, active investment managers can try to succeed with any or a combination of all of four investment approaches:

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 528

Market timing • Selecting specific stocks or groups of stocks • Making timely changes in portfolio structure or strategy • Developing and implementing a superior, long-term investment concept or philosophy

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 529

You have to be there “when lightning strikes.” That’s why market timing is a truly wicked idea. Don’t try it—ever.

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 582

There are three main components in the average rate of return: • The real risk-free rate of return. • A premium over the risk-free rate of return to offset inflation’s expected erosion of purchasing power. • A premium over the inflation-adjusted risk-free rate of return to compensate investors for accepting market risk.

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 1366

Warning: Performance measurement is least useful when it is needed most—and is needed least when it could be most effective.

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 1752

This is why investment results should be measured over at least one full cycle of up markets and down markets.

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 1804

“Could I be wrong?”

Charles Ellis, Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing, loc. 3044