I use investment vehicles that I understand and that make sense. I avoid fads. I don’t chase returns in specific asset classes, funds, or regions. I stay broadly diversified so that we have exposure to many areas of the markets, and try to minimize transaction costs, taxes, and risks related to individual companies. I believe it is about time in the markets, not timing the markets.

There is an entire industry built around forecasting where the markets are going. Sometimes they are right, sometimes not. I believe by broadly diversifying we can allow the markets to work for us and not end up “chasing the puck” every period.

“Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.”

• Warren E. Buffett, CEO of Berkshire Hathaway