By Burton G. Malkiel.
Buy and hold low expense index funds. Everything else in this book tells you why. Malkiel asserts (and I agree with him) that no investment expert can consistently beat the market in he long run. Especially when you consider expenses and tax.
Many investment strategies eat themselves up. Take the dogs of the Dow for example, the idea that you invest in the highest yield Dow stocks and regularly adjust your portfolio accordingly. If you think about it, if enough people doe this this, then low yield stocks never drop price enough (which boots yield) to make the strategy work.
Diversifying according to the market size (which an index fund accomplishes) is self reinforcing. It doesn't fail because many people do so.
But that's not the only reason to invest in low expense index funds. Read the book if you want all the details.
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