A Random Walk Down Wall Street.

Burton G Malkiel

Physical

In Circulation

Updated with a new chapter that draws on behavioral finance, the field that studies the psychology of investment decisions, here is the best-selling, authoritative, and gimmick-free guide to investing. Burton Malkiel evaluates the full range of investment opportunities, from stocks, bonds, and money markets to real estate investment trusts and insurance, home ownership, and tangible assets such as gold and collectibles.

This edition includes new strategies for rearranging your portfolio for retirement, along with the book’s classic life-cycle guide to investing, which matches the needs of investors in any age bracket. A Random Walk Down Wall Street long ago established itself as a must-read, the first book to purchase before starting a portfolio. So whether you want to brief yourself on the ways of the market before talking to a broker or follow Malkiel’s easy steps to managing your own portfolio, this book remains the best investing guide money can buy.

What will you learn from this book

  1. Efficient Market Hypothesis (EMH): Malkiel introduces the concept that financial markets are largely efficient and reflect all available information. This theory suggests that it's difficult, if not impossible, to consistently outperform the market.

  2. Random Walk Theory: The book discusses the idea that stock market prices move randomly and unpredictably, making it challenging for investors to predict short-term price movements.

  3. Diversification: Malkiel emphasizes the importance of diversification as a risk management strategy. Spreading investments across different asset classes can reduce risk without necessarily sacrificing returns.

  4. Asset Allocation: The book likely explores the significance of asset allocation in building a well-balanced investment portfolio, considering factors such as risk tolerance, investment goals, and time horizon.

  5. Long-Term Investing: Malkiel advocates for a long-term investment approach rather than trying to time the market or engage in frequent buying and selling, aligning with the idea of holding investments over the long haul.

  6. Index Investing: The concept of index investing, particularly investing in broad-based index funds, is highlighted as a way to achieve market returns at lower costs compared to actively managed funds.

  7. Behavioral Finance: Malkiel might touch upon behavioral biases that influence investors' decisions, leading to suboptimal outcomes. Understanding these biases can help investors make more rational choices.

  8. Market Anomalies: The book might explore various market anomalies or historical patterns in stock prices, discussing whether these anomalies can be exploited for profit.

  9. Role of Technical and Fundamental Analysis: Malkiel discusses the limitations of both technical and fundamental analysis in predicting stock prices and suggests that relying solely on these methods may not lead to consistent success.

  10. Continued Learning and Adaptation: Lastly, Malkiel may stress the importance of continuous learning, staying informed about market trends, and adapting investment strategies accordingly.

Language English
ISBN-10 978-0-393-33033-5
No of pages 435
Font Size Medium
Book Publisher W. W. Norton & Company
Published Date 22 Jan 2008

About Author

Author : Burton G Malkiel

1 Books

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