The essence of effective portfolio construction is the use of a large number of poorly correlated assets.

Investment success accrues not so much to the brilliant as to the disciplined.

Market risk is like taking a plunge into a cool pool ... a lot of people are finding out right now what their risk tolerance is.

The key thing about any fund is to make sure its expenses are low. You know, if you look at the funds in your plan and you see that they're all charging 1.5 and 2 percent,you've gota bad plan.

You have to understand what market history looks like. What market history tells you is that the very, very best investments are made when things look the worst.

An index fund is a fund that simply invests in all of the stocks in a market. So, for example, an index fund might invest in every single stock or almost every single stock in the U.S. market, it might invest in every single stock abroad, or it might invest in all of the bonds that are out there. And you can make a perfectly fine investing portfolio that mixes equal parts of all three of those.

There are two kinds of investors, be thay large or small: those who don't know where the market is headed, and those who don't know that they don't know.