Hint: money flows into most funds after good performance, and goes out when bad performance follows.

Ask yourself: Am I an investor, or am I a speculator? An investor is a person who owns business and holds it forever and enjoys the returns that U.S. businesses, and to some extent global businesses, have earned since the beginning of time. Speculation is betting on price. Speculation has no place in the portfolio or the kit of the typical investor.

The idea that a bell rings to signal when investors should get into or out of the stock market is simply not credible. After nearly fifty years in this business, I do not know of anybody who has done it successfully and consistently. I don't even know anybody who knows anybody who has done it successfully and consistently. Yet market timing appears to be increasingly embraced by mutual fund investors and the professional managers of fund portfolios alike.

Fund investors are confident that they can easily select superior fund managers. They are wrong.

Capitalism is not a Ponzi scheme. Capitalism is a scheme of free markets.

The principal role of the mutual fund is to serve its investors.

Time is your friend; impulse is your enemy.