by Burton G. Malkiel
Burton Malkiel’s “A Random Walk Down Wall Street” examines the unpredictability of stock markets, advocating for a passive investment strategy using index funds.
Malkiel argues that markets are generally efficient, meaning that prices already reflect all available information, making it difficult to consistently “beat the market.”
The book covers various investment philosophies, including technical analysis and fundamental analysis, critiquing their effectiveness and providing evidence for a random-walk theory—where price changes are essentially unpredictable and independent of past movements.
Malkiel also provides practical guidance on building a diversified portfolio aligned with one’s financial goals, time horizon, and risk tolerance.
With a focus on broad market participation and long-term growth, “A Random Walk Down Wall Street” challenges active trading and emphasizes the benefits of low-cost, diversified investing, making it an insightful read for anyone seeking a stable approach to wealth-building.