Core Values of Passive Investing

Asset allocation is the most important determinant of returns

Markets are efficient

Passive investing is the winner's game

Active investing is the loser's game

Risk and reward are related

Price matters, so do transaction costs and expense ratios

Market timing and stock picking don't work

Speculating is not investing

Effective diversification reduces risk

Dissimilar price movement diversification reduces risk

Small cap stocks outperform large cap stocks

Value stocks outperform growth stocks

Global diversification adds value and reduces risk

Investment policy is the most effective antidote to emotions

Focus on the long term, not the short term

Asset class/index funds are the preferred investment option