Best Advice

Advice learned from Rodney Dangerfield

Christopher J. Ailman. Chief investment officer, California State Teachers' Retirement System

Al Czervik, played by Rodney Dangerfield, in the movie "Caddyshack,", gets a call on the golf course. "Hello. It's my broker. What? Then buy, buy, buy! Oh, everyone's buying? Then sell, sell, sell!"

From Al, Ailman learned to not follow the herd, they are generally wrong and late. If everyone wants to buy, it's probably the top. If everyone is heading for the exit, it's definitely the bottom. 

Advice from Horace

John Bogle. Founder, Vanguard

The Roman poet Horace once said "Whoever cultivates the Golden Mean avoids both the poverty of a hovel and the envy of a palace." Bogle uses the idea of the Golden Mean in allocating funds in his balanced funds. Bogle thinks that asset allocation is the most important decision investors must make. It helps keep our counterproductive emotions out of the picture, assuring us of some profits when stocks rise and some protection when they fall. It also enables you to "stay the course" through thick and thin.