Index investing outperforms active management year after year.

The Federal Reserve was not founded to bail out Bear Stearns or a few hedge funds. It was founded to keep a stable currency and maintain its value.

Acknowledge the complexity of the world and resist the impression that you easily understand it. People are too quick to accept conventional wisdom, because it sounds basically true and it tends to be reinforced by both their peers and opinion leaders, many of whome have never looked at whether the facts support the received wisdom. It's a basic fact of life that many things "everybody knows" turn out to be wrong.

If anybody laughs at your idea, view it as a sign of potential success!

Do not buy the hype from Wall St. and the press that stocks always go up. There are long periods when stocks do nothing and other investments are better.

Many investors seem to have forgotten a hard reality: There are frequent periods when stock markets don't do much.

I cannot invest the way I want the world to be; I have to invest the way the world is.