26 of 40
BACK NEXT
It's hard to exploit a trend
Gus Sauter
Managing director and chief investment officer, Vanguard

I got my number-one piece of financial advice in an investments course at the University of Chicago business school in 1979. It may sound a little self-serving: Index investing is a great way to gain exposure to the marketplace.

The second-best advice I ever received came from a friend of my parents. He said, if you think investments are going to do something within a certain time frame, double that time frame. It could be anything from growth stocks outperforming value stocks to the dollar strengthening. That kind of advice gives you a dose of humility: It acknowledges that trying to exploit a trend is very difficult, even if you're right about it, because your timing may be all off.

NEXT: Know what risk you are taking

Last updated July 22 2008: 11:27 AM ET
More Galleries
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
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

Special Offer