A Random Walk Down Wall Street: Including a Life-Cycle Guide to Personal Investing
Author: Burton Gordon Malkiel
List Price: $15.95
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ISBN: 0393315290
Publisher: W.W. Norton & Company (September, 1996)
Sales Rank: 76,399
Average Customer Rating: 4.14 out of 5
Customer Reviews
Rating: 5 out of 5
Entertaining overview of important investment concepts
As a financial consultant in a global financial services firm, I wholeheartedly recommend this book to anyone in the markets. Burton Malkiel's central concepts still hold up in this seventh edition. He updates with stories of the latest investment follies, and uses them to back up his central assertion: investing in the capital markets requires a long-term time horizon, an understanding of the risks involved, a resistance to rushing into the latest hot trend without researching it, and some kind of investment strategy. (Those investors who trade, trade, trade on broker advice should always remember: Brokers make money on every trade in commissions-- they don't care if *you* lose all of your money.) Burton's continued support of index funds as an important part of any diversified asset strategy is backed up by good, rigorous research. Even the best active managers get burned-- Warren Buffett's hot streak finally ran out in the first half of this year, didn't it? Mean reversion does finally win out in the long run. Investors who play the stock market like the Lotto always lose out to the long-term strategists. "A Random Walk down Wall Street" is, and will always be, an immensely valuable work.
Rating: 5 out of 5
"The straight stuff for the intelligent investor"
Burton Malkiel's "A Random Walk Down Wall Street" is, has been, and will remain a classic for the simple reason that the advice this book contains makes sense. He shows why and how investors should hold a broadly diversified portfolio. He promises no gimmicks but merely some wise advice on what to do with your money. His writing style is clear, and he peppers his advice with a touch of humor that--at the very minimum--makes this book an interesting read.Most controversial has been Malkiel's support of the efficient market theory, which leads him to believe that "Investors would be far better off buying and holding an index fund than attempting to buy and sell individual securities or actively managed mutual funds." In the thirty years since its first edition, Malkiel's assertion has been supported by an ever-growing mountain of evidence that shows how, over the long run, an index fund outperforms the average actively managed fund. Few believe this advice, and prefer to show how smart they are through active trading, seeing their gains eaten away by brokrage commissions, management fees, short-term capital gains taxes, etc. Even Warren Buffet and Peter Lynch--the most successful traders in history--have admitted that most investors would be better off holding an index fund. Malkiel DOES NOT argue that you should not trade individual stocks or not buy options. He just explains why holding stocks instead of engaging in rapid fire trading will yield hefty returns over the long run. He also shows how options could be a great hedge against uncertainty--if you know what you are doing.
This is a great book that every investor should read.
Rating: 4 out of 5
An excellent primer
The book focuses on the efficient market theory. Whether or not you agree with the theory, this book provides a great deal of background on overall investing. Particularly interesting were the sections on investing fads and follies and how the perils of certain types of analysis. I wouldn't recommend working with an investement professional before you have read and digested this book. Similar Products
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