Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

2 of 40
BACK NEXT
Don't follow the herd
Robert Shiller
Professor of economics, Yale University

My teacher in graduate school at MIT in 1970, Charles Poor Kindleberger, who later wrote "Manias, Panics, and Crashes," first convinced me of the social process that drives much of what goes on in speculative markets. One needs to think antisocially to excel in investing, to resist the patterns of thinking that seem mysteriously to arrive simultaneously in the minds of millions of people around the world.

People do not trust their own judgment but go along with the crowd, even when they can see truth. In a world populated with such people, there are investing opportunities for people who make the effort and do the work see clearly for themselves.

NEXT: Do what you love

Last updated July 22 2008: 11:27 AM ET
More Galleries
Brexit voices: In or out? CNNMoney speaks to British people to find out their views ahead of the referendum on EU membership. More
10 key facts about the U.S. economy Unemployment is down, gas is cheap and America is growing. But just how strong is it? More
10 best investing apps (and sites) Investing should be cheap, effective and easy. These products simplify your financial life. More

Special Offer