Random walk wall street epub

But how successful, Malkiel asked, are they really? Via careful evaluations of performance - looking at those who invested via 'technical analysis' and 'fundamental analysis' - he was able to challenge the adequacy of many of the claims made for analysts' success.

Malkiel found the major active investment strategies to be significantly flawed. Where actively managed funds posted big gains one year, they seemingly inevitably posted below average gains in succeeding years.

By evaluating the figures over the medium and long term, indeed, Malkiel discovered that actively-managed funds did far worse on average than those that passively followed the general market index.

Though many investment professionals still argue against Malkiel's influential findings, his exploration of the strengths and weaknesses of the argument for believing investors' claims provides strong evidence that his own passive strategy wins out overall.

Drawing from his experience as a securities analyst, economist, and investor, the author explains the workings of Wall Street and offers advice on determining the value and potential of stocks. An informative and irreverent guide to financial investment offers a close-up look at the current high-tech boom, explains how to maximize gains and minimize losses, and examines a broad spectrum of financial opportunities, from mutual funds to real estate to gold, especially in light of the dot-com crash.

This gimmick-free, irreverent, and vastly informative guide shows how to navigate the turbulence on Wall Street and beat the pros at their own game.

Skilled at puncturing financial bubbles and other delusions of the Wall Street crowd, Burton G. Malkiel shows why a broad portfolio of stocks selected at random will match the performance of one carefully chosen by experts. Taking a shrewd look at the high-tech boom and its aftermath, Malkiel shows how to maximize gains and minimize losses in this era of electronic brokers, virtual gurus, and flashy investment vehicles.

Learn how to analyze the potential returns, not only for stocks and bonds but for the full range of investment opportunities, from money market accounts and real estate investment trusts to insurance, home owning, and tangible assets like gold and collectibles. Decode the rating game for mutual funds and discover the unique advantages of index mutual funds over the wide range of riskier alternatives. And, in a special chapter appearing only in this paperback edition, tackle the tricky terrain of financial derivatives.

Year in and year out the best investing guide money can buy, this enhanced edition includes an update of Malkiel's famous "Life-Cycle Guide to Investing. Malkielwas first published in and as of is in its eleventh edition.

Despite numerous market shifts and technological developments since , Malkiel asserts that the investment strategy laid out in the first edition of the book holds true: the best way to earn money in the stock market is to buy and hold a diversified and balanced portfolio of index funds. Purchase this in-depth summary to learn more.

Author : Burton G. Malkiel Publisher: W. Author : Andrew W. Investments Posted on Posted on In addition to covering the full range of investment opportunities, the book features new material on the Great Recession and the global credit crisis as well as an increased focus on the long-term potential of emerging markets.

Since stock prices cannot be predicted in the short term, argues Malkiel, individual investors are better off buying and holding onto index funds than meddling with securities or actively managing mutual funds. Not only will a broad range of index funds outperform a professionally managed portfolio in the long run, but investors can avoid expense charges and trading costs, which decrease returns.

First published in , this seventh printing of a A Random Walk looks forward and does so broadly, examining a new range of investment choices facing the turn-of-the-century investor: money-market accounts, tax-exempt funds, Roth IRAs, and equity REITs, as well as the potential benefits and pitfalls of the emerging global economy.