We are facing incredible challenges in the economy of the U.S. and the economy of the globe, but the stock market, we never know whether it's over-discounted or under-discounted or got exactly right its anticipation.

I believe that the mutual fund industry's biggest shortcoming is too much focus on the momentary price of a stock - an illusion - and too little focus on the intrinsic value of the corporation - the ultimate reality. I'm comforted by the fact that Warren Buffett feels the same way.

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.

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

If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.

The historical data support one conclusion with unusual force: To invest with success, you must be a long-term investor.

Surprise! The returns reported by mutual funds aren't actually earned by mutual fund investors.