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
10 of the most luxurious airline amenity kits
10 of the most luxurious airline amenity kits
When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health
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
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

Special Offer
Contact Us Closed Captioning Manage Cookies+ Site Map

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.