Today, despite the signs of an economic recovery, people are still wary of a sudden, unforeseen drop in prices. Perhaps the situation in the Middle East starts the dominoes falling. The U.S. Treasury market is another lurking concern. No one wants to return to the Fall of 2008; a feeling of complete uncertainty. But that uncertainty is an enduring part of the history of investing. The ebb and flow of emotions, the changing tides of greed and fear.  

The smart, simple advice of Warren Buffett and his partner Charlie Munger are like a Norman Rockwell illustration--authentic and comforting. Munger advises to live within your means and to set up your circumstances and expectations so that you don't have to rely on unusual investment returns. Buffett advises to operate with a "margin of safety" and to never have to depend on the kindness of strangers when it comes to money. This simple advice finds friendlier ears today but its' worth is only realized by those who consistently apply it. 

It is the simple and sensible advice that endures. Staying balanced and investing cost-effectively over time are the foundation of a sound investment program. They always have been. But human nature is also about learning and exploring. It is much more gratifying to think you have found the golden needle in the haystack. So a sensible investment strategy that is not consistently followed, will not achieve its goal. A more realistic approach might be to leave a small part of your investment capital for opportunities that are more rewarding. If you decide to go this route, make sure that you understand what you are investing in.You want to stay focused on the task at hand and not depend on a lottery ticket.