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

But in practice, if often comes down to not suffering a loss as big as the huge gain you made a while ago.

Junk bonds prove there's nothing magical in a Aaa bond rating.

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

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

Diversification is your buddy.

Everyone recognizes that's a joke because obviously the number and shape of the pieces doesn't affect the size of the pizza. And similarly, the stocks, bonds, warrants, etc., issued don't affect the aggregate value of the firm.