What funds would you recommend for a young person?

[constructive]

Kinetics Paradigm (WWNPX). Fees are high, but they've matched Fairholme's performance since inception and I like their strategy and holdings. (But I don't own this.)

 

And another vote for index funds.

[vinod1]

If you are going to index then at the very least you need to keep up to date on GMO's asset class forecasts. If you are going to be putting small amounts of money over very long periods of time, then this might not be needed, but if you are going to put say significant amounts then you need to pay attention to valuation.

 

Other choice is go with DFA Funds and focus on value indexes. They have pretty good funds although for the wrong reasons (Fama French nonsense...).

 

Vinod

[bargainman]

it's worth watching/reading Greenblatt's take on this last book and funds:

 

http://www.forbes.com/sites/steveforbes/2011/07/05/joel-greenblatt-interview-transcript/

 

Definitely get his funds in a tax advantaged account.  He walks through the value indexes and the equally weighted funds/etfs and their faults in his book.

 

I would agree with index, and maybe even some vanguard target retirement date funds.  Wellington is a good boring balanced fund.  If you want some growth, go with the Primecap funds which you can get directly from Primecap since vanguard's Primecap is closed.  Dodge and Cox tends to be ok but they are so big I doubt they'll perform that well going forward.  I'll second Kinetics Paradigm.  Tilson Dividend (Not run by Tilson but by Zeke Ashton) is quite good and uses both value and options to enhance returns (but fees are high).  Another that's been mentioned is Wintergreen, he can short too, but he's expensive.   

[Palantir]

Weitz Hickory is also good.