A Random Walk Down Wall Street
Burton G. Malkiel
An economist argues that consistently beating the stock market through active stock-picking or market timing is extraordinarily difficult, making low-cost index investing the rational choice for most investors.
Key takeaways
- Stock Prices Follow a Random Walk
- A Historical Tour of Market Manias
- Fundamental Versus Technical Analysis
- Behavioral Finance and Investor Psychology
- Historical Performance Data: Active Versus Passive
- A Life-Cycle Guide to Asset Allocation
Final takeaway
Before choosing an actively managed investment, honestly compare its long-term track record and fees against a comparable low-cost index fund — Malkiel's consistent, extensively evidenced argument across the book's multiple editions and several decades is that this straightforward comparison, informed by genuine understanding of markets' fundamental unpredictability, reveals passive index investing's substantial advantage for the overwhelming majority of individual investors.
Ratings & Reviews
No reviews yet — be the first to share your thoughts.
