23 of 40
BACK NEXT
You can't fight the market, so join it
Laurence B. Siegel
Director of research, the Ford Foundation

In the 1970s I got my M.B.A. from the University of Chicago. Back then everyone was teaching the efficient-market hypothesis: the theory that it's impossible to outperform the market regularly because existing prices reflect all the information that's presently known about an asset. If you outperform, it's generally because of luck.

My school experiences taught me to buy index funds. As far as I'm concerned, they're the only starting point for an individual investor. You can't control market risks, but you can control costs.

NEXT: Don't save too much

Last updated July 22 2008: 11:27 AM ET
More Galleries
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Royal wedding: How much will it cost? Meghan Markle's wedding to Prince Harry could cost millions once security is included in the bill. See how the costs break down. More
Robot co-workers? 7 cool technologies changing the way we work Experts believe humans and machines will work much more closely together. More

Special Offer