Secrets From Investment Pro Jim Chanos

(MoneyWatch)  I sat down with legendary hedge fund manager Jim Chanos last week. I could have spent hours talking to the man who was one of the first to identify problems at Enron and who warned of financial calamity a full year and a half before the collapse of Lehman Brothers.

His investment advice for the rest of us mere mortals is 100% consistent with many of the moneywatch.com experts: keep it simple, stupid!

• Save as much as you can (large savings may prevent you from assuming too much risk)
• It's awfully hard to beat the market--80-90% of money managers don't
• Stick to an asset allocation plan utilizing index and exchange-traded funds

My favorite Chanos quote is something every seasoned pro knows: "the market befuddles us 4 1/2 days out of 10!" Got that? Even the most sophisticated investors and analysts understand that Mr. Market is a mysterious and often beguiling guy.