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 Enronand who warned of financial calamity a full year and a half before the 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.
This post originally appeared The Financial Decoder blog on CBS MoneyWatch.com. Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she 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.
View all articles by Jill Schlesinger on CBS MoneyWatch » Jill Schlesinger, CFP®, is the Emmy-nominated, Business Analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and Chief Investment Officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.