Do the math. Expect catastrophes. Whatever happens, stay the course.

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

The definition of investment is the deferring ofpresent consumption for future consumption. So, you dohave to be willing to defer. And there are a couple of tricks that you can use to save money. One of them is simply to pay yourself first.

While it is probably a poor idea to own actively managed funds in general, it is truly a terrible idea to own them in taxable accounts... taxes are a drag on performance of up to 4 percentage points each year... many index funds allow your capital gains to grow largely undisturbed until you sell... For the taxable investor, indexing means never having to say you're sorry.

For the taxable investor, indexing means never having to say you're sorry.

The typical fund company services 401k plan participants in the same way that Baby Face Nelson serviced banks.

It's human nature to find patterns where there are none and to find skill where luck is a more likely explanation (particularly if you're the lucky manager).