It's bad enough that you have to take market risk. Only a fool takes on the additional risk of doing yet more damage by failing to diversify properly with his or her nest egg. Avoid the problem-buy a well-run index fund and own the whole market.

You have to understand your own psychology. You have to understand that human beings weren't really designed to invest. We have all these emotions that are appropriate responses if you're being chased by a tiger, but they're terrible responses if you've got a 30-year time horizon to think about investment or when you're trying to manage investment over 30 years.

The reason that 'guru' is such a popular word is because 'charlatan' is so hard to spell.

Mutual fund manager performance does not persist and the return of stock picking is zero.

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

Bluntly put, there's no chance that your doctor, dentist, or attorney is a high-school dropout. Your stockbroker, however, just might be.

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