Using the dot-com crash as an object lesson in how not to manage your portfolio, here is the best-selling, gimmick-free, irreverent, vastly informa...
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Apr 02, 2009
Scott
rated it: 
Malkiel's been writing and rewriting this classic tome on investing for the last thirty-five years. I gave him 5 stars for being fully engaged in the process of revision. Sometimes I wish all authors would write (and rewrite) just one good book (and that actors would star in only one movie). But that's like asking investors to put their money in just a few low-cost funds and hold it there for decades ... hey, that's what Malkiel's talking about! So it's not the most exciting approach to investin
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Jan 21, 2008
Todd
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From talking to friends and reading an internal financial mailing list at work I got the vague impression that this book was somehow too esoteric or controversial to bother with. I am very glad that I decided to read this book.
It's hard to work in Silicon Valley without being affected by Wall Street. When I started working I was interested in technology, not business and finance. Business and finance seemed a bit beneath me. (Actually, technology seemed a bit beneath me too. I was ki More...
It's hard to work in Silicon Valley without being affected by Wall Street. When I started working I was interested in technology, not business and finance. Business and finance seemed a bit beneath me. (Actually, technology seemed a bit beneath me too. I was ki More...
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Jan 07, 2009
Tom
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Mar 23, 2011
Booklist Reviews 2011 February #1
In the tenth edition of A Random Walk down Wall Street, Malkiel evaluates and emphatically stands by his original investment thesis, that it is extremely rare for an individual investor to consistently beat the stock-market averages. Investors are better off buying and holding an index fund than attempting to buy and sell individual securities or actively managed mutual funds. An index fund which buys and sells all the stocks in a broad stock-market averag More...
In the tenth edition of A Random Walk down Wall Street, Malkiel evaluates and emphatically stands by his original investment thesis, that it is extremely rare for an individual investor to consistently beat the stock-market averages. Investors are better off buying and holding an index fund than attempting to buy and sell individual securities or actively managed mutual funds. An index fund which buys and sells all the stocks in a broad stock-market averag More...
Jun 06, 2010
Anthony
rated it:
This book was excellent because it made me look at investing much differently than before. The books mantra is basically to be an average investor and that by being average you will beat the majority of the professional investors over the long term. This seemingly contradictory statement is true because the financial industry essentially acts like a middle man, taking a small percentage of customer assests, that in the long term add up significantly. I enjoyed this book because it is relative
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Jun 13, 2011
Chad
rated it: 
Investors are bound to have heard about this classic and it’s author, economist Burton Malkiel. In this book, he explains that the market is highly efficient, and no one can accurately predict its ups and downs; it’s a “random walk”. So, the best approach is passive, “buy and hold” investing using diversified index funds held long term. I recommend this book to investors of any level, especially those attracted to active, speculative investing.
The book begins with a fairly boring recou More...
The book begins with a fairly boring recou More...
Jan 02, 2012
Paul
rated it: 
Malkiel's book is just a repackaged version of the same garbage investment firms have fed to the public for years. If the last decade-plus has proved anything, it's that one cannot expect to succeed as an investor by placing your investments on auto-pilot. Following Malkiel's strategy of buying and holding index funds (and not reacting to market conditions), an investor would have reaped negative returns when inflation is factored in.
I've read more than a few books on investing and t More...
I've read more than a few books on investing and t More...
Dec 10, 2011
Nick
rated it:
A classic book on investing, I really enjoyed the first part of the book. Here are a few of the "morals" of this book:
-The "Firm Foundation Theory" or fundamentals of stock picking are based on the following:
1.)the expected growth rate
2.)the expected dividend payout
3.)the degree of risk
4.)the level of market interest rates
BUT, the two caveats are 1)expectations about the future cannot be proven in the present (hence the title of thi More...
-The "Firm Foundation Theory" or fundamentals of stock picking are based on the following:
1.)the expected growth rate
2.)the expected dividend payout
3.)the degree of risk
4.)the level of market interest rates
BUT, the two caveats are 1)expectations about the future cannot be proven in the present (hence the title of thi More...
Jun 03, 2011
Yosep
rated it:
I'm about 7/8 through this book.
I gotta say I was going to read this after reading Bogle's "Little Book of Common Sense Investing", but I was reluctant because I thought it was going to be another index fund jerk-off fest which would put me to sleep after reading Bogle's book.
I was very wrong.
Even if you don't give a flip about the stock market, you should read this book. It is that good. The information found within might astonish or surprise you as it co More...
I gotta say I was going to read this after reading Bogle's "Little Book of Common Sense Investing", but I was reluctant because I thought it was going to be another index fund jerk-off fest which would put me to sleep after reading Bogle's book.
I was very wrong.
Even if you don't give a flip about the stock market, you should read this book. It is that good. The information found within might astonish or surprise you as it co More...
Apr 10, 2011
Charles
rated it:
A Random Walk Down Wall Street has long been one of my favorite investing books and this is worthy update. Burton Malkiel strongly believes in passive investing (buying mutual funds or ETFs that track an index, such as the S&P 500) and he reinforces his argument is this book. Malkiel believes that over the long-term, beating the market is not possible. He provides data to back up his claims.
If you are new to investing, this book is a great way to start learning. If you have been inve More...
If you are new to investing, this book is a great way to start learning. If you have been inve More...
Sep 05, 2008
Derrick
rated it:
Indexing - a strategy I learned initially from other sources - is best described in this book and other books by John Bogle. The last decade has not been kind to indexers, but, if Warren Buffett is right (and he is mostly on finanical matters), indexing is the most sensible financial strategy for most investors, hands down.
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Dec 08, 2011
Brady
rated it:
I found Malkiel's arguments convincing and often entertaining. They were convincing in large part because he takes time to consider opposing arguments and even gives them credit in a few cases. In addition, it helped that he examines how some of the attitudes and counter-arguments to his long-consistent suggestions have changed over time.
The original book was published decades ago, but there is so much about recent events woven throughout the 2011 edition that you wouldn't guess it f More...
The original book was published decades ago, but there is so much about recent events woven throughout the 2011 edition that you wouldn't guess it f More...
Apr 23, 2009
Thomas
rated it:
If you only read one book on investing, let it be this one. The self-help elements of this guide will seem quite familiar to the educated investor. Nevertheless, the advice is solid, which is more than you can say for the horde of financial gurus ravaging print. Although Malkiel spends a lot of time justifying his theories of investment, you can skip much of the technical detail by only reading the chapters that give advice, rather than theory. To do so would be to miss the beauty of this compre
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Feb 15, 2011
Clem
rated it: 
I've always thought reviews that contain lines such as "This book has changed my life completely" is nothing more than a silly exaggeration until reading this book - I wouldn't say it has changed my life entirely, but it has definitely changed my perspective and outlook of the thorny investing world where you often have to trim the weeds and learn how to sow the seeds.
The writing is simple enough to understand for most budding investors, yet at the same time it appealed to th More...
The writing is simple enough to understand for most budding investors, yet at the same time it appealed to th More...
Dec 30, 2009
Ethan
rated it: 
This was a mediocre book. Malkiel mealy-mouths his way around most topics, offering his readers a lot of qualifiers and very little factual information. There are no footnotes (WTF? this guy claims to be an academic?) despite many references to nebulous studies that "prove" this or that. Altogether, it's a pretty shoddy piece of work. I agree with much of what he says, and it is sound advice, but it's all very basic common-sense kind of stuff with not a whole lot of meat behind it
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Nov 19, 2008
Andrew
rated it:
This book is about investing. The main premise is that actively managed mutual funds are a waste of money and it is preferable to use a low-fee index fund. Extensive data is provided to support this argument. At the end there is a good section on diversifying into other types of investments (e.g. bonds) in addition to stocks.
The first half is a short summary of investment history for the past few hundred years. I feel like a good analyst can make history prove whatever point he wan More...
The first half is a short summary of investment history for the past few hundred years. I feel like a good analyst can make history prove whatever point he wan More...
Jan 09, 2012
Bill
rated it:
This book is a sturdy MUST READ for anyone interested in investing in stocks, bonds or other financial instruments. Though I stopped investing about 25 years ago, it has become necessary to take it up again and this book is bringing me up to date in a deeply changed environment. After finishing the book taken as a loan from our Hilo Hawai`i Public Library, I bought my own 2011 edition, the tenth or so since the first edition of 1973.
The author is the most stalwart realist I've ever e More...
The author is the most stalwart realist I've ever e More...
Jun 06, 2009
Tyler
rated it:
I'd rate this book higher if it could figure out what it wants to be and focus on that. I don't disagree with Malkiel's take on efficient markets for the most part, and I enjoyed the different parts to this book, but it just isn't cohesive. The first part is genuinely fun, with a lot of great stories on the history of stock investments and the difference between investing on fundamentals vs. the "greater fool theory." But then the book turns into a textbook, like Investments 101 but wi
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Apr 01, 2011
Ryan
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I didn't much care for this book. There was some good information here and there but overall the author came off as smug and idealogical. It seemed to me that the book contained a lot of assertions and conclusions without enough evidence to back them up. Additionally, some of the author's proclamations seemed to be in direct conflict with one another. Finally, the author's emphatic statements in the appendix regarding derivatives, specifically how they didn't pose a systemic threat to world
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Jan 06, 2012
John
rated it:
A variety of ways to invest so that an investor can eat well and sleep well. Many advisers recommend a low cost index fund for the long run. Bonds should be tax free where a 4% tax free will bring more return than a 6% bond after taxes. If one can afford it owning a home is recommended due to the write offs of monthly interest and property tax. Re-balancing could boast performance when allocations have gone past specified percentages on a annual basis. He also likes to allocate higher % to china
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Aug 03, 2011
Patrick
rated it:
Reading this one has to wonder if Malkiel has a vendetta of sorts against traders. I gave this book a two-star rating because while Malkiel illustrates his points well and backs them with clear rationale and examples, it kills one's faith that they might be able to utilize their own knowledge and creativity to beat the odds in the stock market. He writes about trading in similar fashion to how an atheist might write about Catholicism.
Personal opinion: if you're considering trading More...
Personal opinion: if you're considering trading More...
Jan 17, 2012
Marshall
rated it:
This is my favorite book on investing. I would recommend it to anyone interested in learning about investing. It's very easy to read, and sometimes even reads like a story, and yet still manages to cover all the details. This is an impressive feat, considering that every other decent investing book I've found is a snoozer. I've found books that are easy to read, but they're only easy because they're simplistic. Add to that the tons of misinformation out there, telling you how you can "beat
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Aug 08, 2011
Andrew
rated it:
This book is perhaps _the_ classic counterpoint to some of William O'Neil's great books, like "How to Make Money in Stocks" or "The Successful Investor."
The strategy: diversify among asset-classes. For stocks, use unmanaged, inexpensive market index funds. Buy-and-hold, the longer the better. Want more return? Risk more loss.
Why?
Technical analysis gets a voodoo reputation because it _is_ voodoo. It's scientism. It flows from misunderstandin More...
The strategy: diversify among asset-classes. For stocks, use unmanaged, inexpensive market index funds. Buy-and-hold, the longer the better. Want more return? Risk more loss.
Why?
Technical analysis gets a voodoo reputation because it _is_ voodoo. It's scientism. It flows from misunderstandin More...
Feb 12, 2011
A short summary, to jog the memory:
Part One introduces two main approaches to asset valuation: the firm-foundation theory, and the castle-in-the-air theory. The firm-foundation theory states that the price of an asset is based on its intrinsic value, which in turn is based on the assets current condition and future prospects. The castle-in-the-air theory holds more that an asset is worth only what someone is willing to pay for it, which is based on the emotions and perceptions of the i More...
Part One introduces two main approaches to asset valuation: the firm-foundation theory, and the castle-in-the-air theory. The firm-foundation theory states that the price of an asset is based on its intrinsic value, which in turn is based on the assets current condition and future prospects. The castle-in-the-air theory holds more that an asset is worth only what someone is willing to pay for it, which is based on the emotions and perceptions of the i More...
Mar 30, 2010
Jarrod
rated it:
Burton Malkiel's "A Random Walk Down Wall Street" is the book that popularized passive investing. As a Princeton professor and board member of the Vanguard Group, Malkiel brought the practical implications of the efficient market hypothesis to the general investing public. The ideas in this book are now so ubiquitously accepted, that I actually learned very little new information. However, I am pleased to have experienced the original source of this powerfully simple yet effective inve
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Jan 17, 2009
Robert
rated it:
This, the 1999 edition, is the one at my library. I will be catching up on the newest edition soon.
This is a comprehensive but essentially non-technical presentation of the Efficient Market Hypothesis (EMH or EMT, T for Theory, I prefer to call it a Hypothesis since there is a lack of rigor or proof in it, and EMH does not pronounce "Empty") and a comprehensive dismissal of the other popular investment techniques whose popularity derives from greed, hope and the fees that More...
This is a comprehensive but essentially non-technical presentation of the Efficient Market Hypothesis (EMH or EMT, T for Theory, I prefer to call it a Hypothesis since there is a lack of rigor or proof in it, and EMH does not pronounce "Empty") and a comprehensive dismissal of the other popular investment techniques whose popularity derives from greed, hope and the fees that More...
Sep 19, 2008
Peter
rated it:
Burton details his theories on how the stock market truly performs. In his summation, and backed by his research, in the long term the markets are truly efficient, this is known as the Efficient Market Theory EMT. This this theory is widely debated, and has many variations depending on the time span you are evaluating and how efficient you really think the market is. In short, EMT states more or less, that stocks are always correctly priced and no stock be undervalued or overvalued as everything
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Sep 18, 2008
Mark
rated it:
Malkiel is a ecnomonist professor at Harvard and thus his book is much more academically focused than Bernstein’s. Much if front end was not new materials, just a retelling of some of the market goofs like the Tulip crazy over history. Spends lots of time on the efficient market theory explaining his belief that though some people argue that the market is so efficient that every possible bit of information of a stock is already reflected in price, he actually says some people can spot ineffici
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Sep 15, 2008
John
rated it:
A review in honor of today's near-5% fall in the major indexes, the bankruptcy of Lehman Brothers, and the 2008 collapse of 3 of 5 of the independent investment banks. So far.
"Random Walk" is worth reading for anyone about to buy shares or mutual funds for the first time. While current descriptions of the book emphasize investment advice, the 1973 thesis is really that buy-and-hold is the only logical strategy. Uncovering market "opportunities" is a fool's game. More...
"Random Walk" is worth reading for anyone about to buy shares or mutual funds for the first time. While current descriptions of the book emphasize investment advice, the 1973 thesis is really that buy-and-hold is the only logical strategy. Uncovering market "opportunities" is a fool's game. More...
Feb 11, 2009
Mike
rated it:
I'm not much of a money / investing person... hence reading this. The moral of the story, invest in stocks and mutual funds with the idea of leaving the money alone. I did enjoy the history bit of things like the tulip craze in Holland... don't give in to greed or easy money... there's no free lunch. And, the hemline theory was particularly funny. Malkiel doesn't give much credit to money managers and says we should run our own portfolios... said chimps throwing darts at a board could pick a
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