Income earned by the sweat of your brow should be taxed at the lowest rates, not the highest. Capital gains should be taxed at a higher rate.

The stock market is a giant distraction to the business of investing.

Speculation leads you the wrong way. It allows you to put your emotions first, whereas investment gets emotions out of the picture.

The general systems of money management today require people to pretend to do something they can't do and like something they don't. It's a funny business because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work. Mutual funds charge two percent per year and then brokers switch people between funds, costing another three to four percentage points. The poor guy in the general public is getting a terrible product from the professionals.

If you're very talented and keep winning, you'll do just fine. It may take a while. But the talent is hard to identify and talent is hard to tell from luck. There's an awful lot of luck in this business. Past performance is not helpful in judging future performance.

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

Index funds eliminate the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains.