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.

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
14 awesome toys for the holiday wish list From a DIY Star Wars Droid to a new Hatchimals toy and interactive Fingerlings, these products are worthy of a coveted spot on holiday wish lists. More
11 tasty treats to bring back from a business trip Nothing is as crowd-pleasing or pragmatic as edible souvenirs. We've found foodie gifts that are both delicious and distinguished in 11 popular business destinations. More
15 women who founded $1 billion startups Meet 15 women behind some of the world's hottest startups. More

Special Offer