Richard Thaler won the 2017 Nobel Prize in economics for his work on how humans may not act as rationally as economists' models assume. The acclaimed U.S. economist also happens to help run a highly successful hedge fund: Fuller & Thaler Asset Management, which has almost doubled the S&P 500's gains since the beginning of the bull market in 2009.
In his 2015 book "Misbehaving," Thaler summarizes his advice for how to get around an instinctive aversion to loss and invest successfully yourself, which he says is pretty simple: Opt for a mix of investments, mostly stocks; only check your portfolio about once a year; and don't follow the news.
Just set it and forget it.
"Whenever anyone asks me for investment advice, I tell them to buy a diversified portfolio heavily tilted toward stocks, especially if they are young," he writes, "and then scrupulously avoid reading anything in the newspaper aside from the sports section."