I favour passive investing for most investors, because markets are amazingly successful devices for incorporating information into stock prices.

Everybody has some information. The function of the markets is to aggregate that information, evaluate it and get it incorporated into prices.

I had some of the students in my finance class actually do some empirical work on capital structures, to see if we could find any obvious patterns in the data, but we couldn't see any.

As an economics undergraduate, I also worked on a part-time basis in Cambridge, Massachusetts, for a company that was advising customers about portfolio decisions, writing reports.

I should mention that I am a member of the board of directors of Dimensional Fund Advisors.

Diversification is your buddy.

I favour passive investing for most investors, because markets are amazingly successful devices for incorporating information into stock prices.