Secrets From Investment Pro Jim Chanos

By: Jill Schlesinger

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.

Jill Schlesinger
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Jill Schlesinger, CFP®, is the Editor-at-Large for CBS MoneyWatch. She covers the economy, markets, investing or anything else with a dollar sign. Prior to the launch of MoneyWatch in 2009, Jill was the chief investment officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
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