Publisher: Norton, 1999, 461 pages
Here, in the newest edition of a perennial bestseller, Burton G. Malkiel maps a clear path through the financial minefield of digital stockbrokers, virtual gurus, and flashy new investment vehicles, preparing individual investors to go head-to-head with the pros on Wall Street.
Now more than ever, this sure-footed, irreverent, and vastly informative volume is an indispensable "best buy" for personal money management. In A Random Walk Down Wall Street you will discover how much fun it can be to beat the pros at their own game — and learn a user-friendly, long-range investment strategy that really works. Skilled in the ways of Wall Street, Malkiel shows why a portfolio of stocks selected at random will match or exceed the performance of stocks carefully picked by professionals using sophisticated analytical techniques.
Investing is too murky a venture to be undertaken without first reading A Random Walk Down Wall Street. You’ll learn how to estimate potential returns, not only for stocks and bonds, but for the full range of investment opportunities, from money market accounts and real estate investments trusts to insurance, home owning, and tangible assets like gold and collectibles.
Savvy to irrational exuberance, deceptive sales pitches, and institutional change, Malkiel brings his characteristic clarity to this enhanced edition, illuminating key decisions facing contemporary investors. Looking for a hot stock? View todays's Internet enthusiasm from the perspective of past financial booms and busts. Concerned about the global economy? Learn the benefits that come with the risks of international investing. Overwhelmed in choosing a fund? Decode the rating game for mutual funds, and discover the unique advantages of index funds over the wide range of riskier — and more expensive — alternatives. Feeling battered by the taxman? Capitalize on the latest opportunities for reducing, and even eliminating, the tax bite from investment earnings.
This latest edition also includes an update of Malkiel’s invaluable "life-cycle guide to investing," showing how to match an investment strategy to each stage of your life. As the author writes, "one's capacity for risk-bearing depends importantly upon one's age and ability to earn income from noninvestment resources."
Sound advice for the wary but ambitious investor, A Random Walk Down Wall Street proves once again that it is possible to be smart and rich.
The classical text on effective (or not) markets. You need it in the bookshelf.