[Epub] ➛ A Random Walk Down Wall Street Author Burton G. Malkiel – Tshirtforums.co.uk


10 thoughts on “A Random Walk Down Wall Street

  1. says:

    English A Random Walk Down Wall Street Italiano

    A challenging walk around Wall Street, in different time periods that affected the American economy and consequently the World, in order to provide us the necessary elements to understand the main investment rules applied on the stock exchange Burton G Malkiel describes with clear examples the differences between audacious investment strategies, designed to quickly profit, and prudent strategies that aim to increase profits in longer times.

    Recommended for those who want an introduction to the stock market world.

    Vote 7

    Una stimolante passeggiata per Wall Street, percorrendo varie tappe temporali che hanno segnato l economia americana in primis, e di riflesso quella mondiale, allo scopo di fornirci gli elementi necessari a comprendere le principali regole di investimento in borsa Burton G Malkiel descrive con chiari esempi le differenze tra strategie di investimento spregiudicate, volte a trarre profitto in tempi brevi, e strategie pi prudenti che mirano ad incrementare i profitti in tempi pi lunghi.

    Consigliato a chi vuole un introduzione sul mondo della borsa.

    Voto 7


  2. says:

    Many years ago I bought this book about the stock market In retrospect, it is the worst book I ve ever bought because it made me believe in efficient capital markets The author made his point with a lot of arrogance just like finance professors did 15 20 years ago At the time the markets very certainly not as efficient as the author believed There have been several updates to the book, but the condescending voice of the author remains.For the statistically interested, the problem with a lot of old finance and also not so old research was that it was testing the theory that the market was efficient That is poor philosophy of science You should always test the opposite of what your theory stipulates If you can reject the opposite, your theory is as supported as it can be standard Popper The finance profession in their ignorance of philosophy of science tested it the other way around This means that they could too easily conclude that the markets were efficient Not a word about such complications in this book Why is this relevant I would say that the author is less critical of research that supports his preconceived opinion.I did not realise this bias when I first read the book Instead, I believed the author s conclusion that the markets must be so efficient that it is fruitless to try to beat them That was and is just plain silly The markets are of course tending towards efficiency, so it is not easy to beat them This is an important point However, to state that they are efficient is just plain arrogant So while there are some very good critical analyses in this book, ultimately it might make you believe in something that is very costly That you cannot make money in the stock market unless you are willing to take on a higher level of risk.Currently a lot of academics are questioning the efficient markets This research is not taken seriously by the author I am reminded of Kuhn s comment that the new paradigm only becomes prominent when the old guard dies retires Further, a lot of people with a PhD in finance start hedge funds to exploit anomalies in the market place instead of writing academic articles Wouldn t this be worth serious consideration by the author Still, there is still room for other inefficiencies For instance the role of emotions is totally disregarded by academic finance number crunchers.The author also has advice of how to invest His view is to buy low cost mutual funds This is not awful advice, but still why would you buy mutual funds when the average fund doesn t even return average market returns The only thing you know is that they take 1 3% in management fees every year Do compound interest on that In The Financial Times, the author recently argued that stocks in emerging markets are undervalued It is hard to believe in efficient markets and write an investment column So he just assumes contrary to his book that the markets are inefficient and have not priced those stocks correctly Check out recent videos from 2011 He says that he believes in efficient markets when it comes to publicly available information Then he proceeds to state that people in 1999 bought the wrong kind of stocks Internet, technology , which were overvalued Yes, I would agree those stocks were in a bubble But honestly, then you cannot believe in efficient markets These blaring inconsistencies are remarkable.If you have read this far and want to give me negative feedback, be my guest I posted a version of this review on an earlier edition of the book, and the review got trashed be believers When you get a lot of negative feedback on a negative review on that tells you the author has a lot of worshippers That should make you worried.A rational response would be to read Justin Fox s The Myth of the Rational Market It tells a much nuanced narrative about the efficiency of capital markets and prominent academics role in developing ideas and theories The style of the book is not preachy at all His stories show academic finance to be a very dogmatic environment in the 80s and 90s You could be called a communist by the stars in the field and have your chances of employment reduced if you didn t sign up to the belief that markets are efficient It is all described in Fox s book Or read Shiller s Irrational Exuberance describing how bubbles have been removed from finance textbooks and PhD syllabi because they doesn t fit with the rational actor model He has the following to say about the efficient market hypothesis one of the most remarkable errors in the history of economic thought Or read Montier s Behavioural Investing A Practitioners Guide to Applying Behavioural Finance The Wiley Finance Series or his other books for evidence of imperfect markets Or read Dreman s column in Forbes magazine.


  3. says:

    Because I read so often, I sometimes think that once in a while I should read something that might materially benefit me So when my brother gave me this book, I thought why not and dove in.The first thing I noticed is that Malkiel is a surprisingly gifted writer He is capable of telling a good story, he s cultured enough to make interesting references, and he has that quintessential skill of all popular writers the ability to present ideas clearly without dumbing them down For someone in my position who managed to get this far in life while remaining astoundingly ignorant of these matters I can t imagine a better introduction into the world of finance Malkiel gives you a little history, a little theory, and a lot of practical advice.Given that I am, as aforesaid, a neophyte, I cannot give an intelligent appraisal of this book That being said, Malkiel did manage to be very convincing He presents anecdotal, theoretical, historical, and statistical reasons to adopt his strategies indeed, he goes to such pains to prove his point, that it s hard not to agree with him Of course, any person who trades actively will probably find a lot to disagree with Particularly contentious is Malkiel s championing of the Efficient Market Theory EMT As my father said to me last night, That s crazy the market isn t efficient it s all mob psychology Malkiel does give mob psychology its due He devotes an entire chapter to behavioral finance, and covers some of the innumerable foibles of our race when it comes to making rational decisions In fact, it was Malkiel s effort to give the opposing views their due minus the analysts, whom he ridicules mercilessly which made him so convincing for me For he is not simply an intractable proponent of EMT, heedless of all the contrary evidence His position is subtle first, he holds that markets, even if they re inefficient in the short run, trend towards efficiency in the long run second, he points out that, even if a stock might be mispriced, the financial tools available for determining if and to what extent it is mispriced are often inaccurate and third, he points to the many practical impediments to cashing in on market inefficiencies, such as transaction fees and capital gains taxes.Of course, I doubt this book is the whole story after all, I personally know people who made considerable money on the stock market using diametrically opposed strategies And for a book on something which has frustrated some of the best and brightest minds, Malkiel comes across as astoundingly cocksure So I cannot say that I am an acolyte On the other hand, the core of Malkiel s advice to invest in a diversified index fund, and hold onto it for a long time strikes me as sensible especially for someone as financially ignorant as am I It also has a certain lazy charm And how often do self help books give their imprimatur to laziness


  4. says:

    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 kind of a snot in my twenties But learning technology was directly related to my income, which forced me to pay enough attention to it to become interested Eventually I got to a point where I had to deal with stock options, employee stock purchase programs, lock out periods, etc My approach to learning about this was similar to my approach to learning about technology trial and error Sadly this was an expensive way to learn One example It cost me about 30,000 to learn the different between a market order and a limit order when selling some VRTY shares I have learned some definite lessons about how the stock market works, but at the cost of money than I thought I would ever have let alone lose.That s why I would recommend this book to anyone who is planning to retire one day i.e everyone , especially people in their twenties with a vaguely technical bent There is enough math and logic to make it interesting combined with enough plain prose and logical advice to make it important reading.If you aren t going to read it, I will summarize it here save early and regularly, put the savings in index funds, try not to die You can safely take out 4.5% of principal, so work backwards from that to figure out how and when to retire.


  5. says:

    Great theories to learn I can see why this became a classic for investors The Firm Foundation Theory Fundamental Analysis The Castle in the Air Theory Technical Analysis


  6. says:

    We live in an age when most people have to control their own retirement destiny by making decisions about 401 k , 403 b , and IRAs Even people with the most modest incomes are encouraged to confront that reality.Malkiel s approach is excellent for most of us who are not into stock analysis He gets high marks for a couple of things 1 He proposed a market index fund before such a thing even existed 2 He has revised his book eleven times In other words he has some street cred Wall Street cred I read this because Jack Bogle of Vanguard fame recommends it as the best book to read on the subject of investment And the real point of reading it I wanted to see what Malkiel s update had to say about my retirement funds in the current economic environment At times I wondered who Malkiel was directing the book at Some of his advice is remarkably simplistic, the kind of advice only a newbie would need Buy a house Keep cash in an emergency fund But then section three is wonky, and he could not resist digging into the research that informs his decisions For two thirds of the book, I found this dichotomy annoying Economists may like section three, but they won t much care about section four, when the hand holding begins.You may or may not care about the arguments over efficient markets Malkiel is generally a believer but acknowledges dissenting views Read it or not If you re here because you are looking for a rationale for a portfolio one you can manage yourself hang in there and read on.Essentially, his advice is classic for our times build a diversified portfolio of index funds some small caps, large caps, international, emerging economies, REITs, and bonds If possible, start early and keep as much as you can in tax sheltered accounts He does not recommend buying a stock index fund and nothing else The comments on diversifying are important.Not a radical approach He does feel that in the middle of this decade we live in an environment that is not likely to offer large returns So his asset allocation recommendations are the meat of his 2015 advice Many readers may want to zoom right in on those later chapters He has comments on the amount of risk appropriate to various situations.You won t get rich quick following his advice, but you probably knew that But you ll probably face retirement with a tidy sum and a stable financial life.


  7. says:

    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 recount of several financial bubbles throughout history, to prove the irrational exuberance of investors Malkiel shows that despite short term trends, the market always corrects itself value will out , as he puts it Crazed investors rush into revolutionary new companies and technologies, but the key to investing is not how much an industry will affect society or how fast it will grow, but its ability to sustain profits In truth, most IPOs underperform.Several investing techniques and theories are evaluated, including technical analysis, fundamental analysis, firm foundation theory, the castle in the air theory, efficient market theory, and modern portfolio theory Malkiel uses the efficient market theory to explain the markets efficiencies, and modern portfolio theory in advising how to construct a diversified portfolio.Malkiel makes a compelling case that active investing is a losing game Active investors generally underperform passive investors because they fail to time their purchases and sales correctly, and they incur transaction fees and taxes on their short term gains Only 1 3 of active investors individual traders and fund managers beat the SP 500 in the short term, and almost none beat it over the long term In this section and throughout the book, Malkiel often refers to John Bogle, champion of indexing and founder of the Vanguard Group I m something of a Bogle disciple, and highly recommend his book The Little Book of Common Sense Investing.After providing a lot of background information, Malkiel finally gets to the part I was looking for specific financial advice He explains asset allocation and diversification, and how to build a portfolio based on your age and risk tolerance I was hoping for example portfolios showing asset allocations for various age ranges, but Malkiel shies away from such detailed recommendations For people in their 20s, like me, he suggests investing aggressively in stocks, including international and emerging markets See my notes below for of his advice.One of the main themes is the relationship between risk and reward Malkiel puts it this way you must decide whether you d rather eat well or sleep well Higher risk is likely to yield higher returns, allowing you to eat well, but the stress may cost you your sleep Only you know the risk you re willing to take for the potential reward.The book ends with an explanation of hedging with derivatives such as futures, put options, and call options I didn t pay much attention, and plan to stick with his simpler advice on diversified indexing.NotesIgnore short term volatility buy and hold for the long term.It s financially wise to own your home It s an inflation hedge, provides tax breaks, and forces saving.The market trends upward, so it s better to invest a lump sum today than to dollar cost average For investors without lump sums, however, dollar cost averaging is the most common and reasonable approach.Save for financial goals using vehicles that mature at the goal date CDs, treasuries, bonds, etcPortfolio constructionDiversify to reduce risk Choose assets with low or no correlation Include US stocks, international stocks, emerging market stocks, REITs, bonds, TIPs, and cash.Hold bonds and bond funds in tax sheltered accounts.Small cap stocks tend to outperform large cap This may be due to higher risk, or survivorship bias.Value stocks tend to outperform growth, because investors tend to overpay for growth.REITs add diversity and have returns similar to stocks They also provide an inflation hedge.Selecting fundsChoose no load, total stock market index funds.If you buy active funds, choose no load, low turnover, low expense funds with little unrealized appreciation.Look for expense ratios less than 0.5% and turnover less than 50%.


  8. says:

    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 investing but it will, in the long run, turn out to be the most rewarding.This newly rewritten version of Malkiel s classic Random Walk first published in 1973 but essentially rewritten at least four or five times since argues that the best way to make money on Wall Street is to build a diversified portfolio of index funds some small caps, large caps, emerging economies, REITs, and bonds and hold on to them for a long, long time in a tax advantaged account He advises you how to adjust your asset allocation according to your age or point in life, and he even allows you to pick a few stocks for minor investments just for fun and to help you stay interested in the market.Preliminary chapters recount bubbles past where would historical economics be without 17th century Holland s fascination with tulips The middle sections debunk dubious investment strategies based in everything from hemlines to super bowls and stresses the importance of sheer, random luck in choosing profitable stocks Part Three looks at modern investment theories if you don t have a background in economics, you might want to skim some of this part The final section details Malkiel s guide to personal finance and investing.If you are curious about how men and women have invested their money over the past 500 years, or how common investment strategies work and don t work in the long run , or how to make the most of your investments over decades, Malkiel s Random Walk will prove to be an engaging, even entertaining read that like most classics can hold up to many re readings You certainly won t get rich quick following Malkiel s advice, but you probably will find yourself in a fairly stable financial state in twenty or thirty years.


  9. says:

    This is probably the best book ever written on the investment side of personal finances It goes into extensive detail as to why you should strongly consider index funds or ETFs rather than mutual funds, individual stocks, or help from a personal financial adviser All 3 of these last alternatives come with a load in terms of either your time or money or both First, Mutual funds are managed and rarely outperform the market For this lack of performance, you get to give away a percentage each year for the management fees Note that these fees apply whether the mutual fund goes up or down.Second, individual stocks are hard to pick without investing a serious amount of time I also find that EVERYONE myself included only track the stocks where they did well We all have a collective mental block that prevents us from remembering the stinkers that lost money for us When you add the wins and losses together, I ve never been able to beat the market Note that whenever I ve bothered to press someone who tells me they have, it turns out they haven tagain, it s that darn mental block thing.Third, and worst of all, you could go with a personal financial adviser As a group, they woefully under perform vis a vis the market They charge you for this failure Note that if you have done zero reading on investing, they can give you guidance on things like balancing asset classes, but you can figure this out for yourself in about two hours The only potentially negative thing I would say about this book is that it is very long It goes into detailed explanations to get to the punchline regarding index funds and ETFs I love this kind of detail, because I ve always been fascinated by investing However, if this is a dry topic for you, you should consider reading The Smartest Investment Book You ll Ever Read It is very short and doesn t support its central premise as well as A Random Walk However, it gets to the same conclusion faster.Happy investing


  10. says:

    An absolutely amazing book going through the essentials of investing and the financial market There is so much useful information digested for the common folk which I have been looking for in various other titles without success The author occasionally exaggerates and gives extreme examples to put emphasis on his points which can be a bit annoying at times I also regret reading a quite old version of the book which has been published right before the economic crisis of 2008 I would say its a must read for anyone interested in investing and would especially recommend it to beginners like myself.


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A Random Walk Down Wall Street summary pdf A Random Walk Down Wall Street, summary chapter 2 A Random Walk Down Wall Street, sparknotes A Random Walk Down Wall Street, A Random Walk Down Wall Street 07871f7 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 Informative Guide To Navigating The Turbulence Of The Market And Managing Investments With ConfidenceA Random Walk Down Wall Street Is Well Established As A Staple Of The Business Shelf, The First Book Any Investor Should Read Before Taking The Plunge And Starting A Portfolio With Its Life Cycle Guide To Investing, It Matches The Needs Of Investors At Any Age Bracket Burton G Malkiel Shows How To Analyze The Potential Returns, Not Only For Stocks And Bonds But Also For The Full Range Of Investment Opportunities, From Money Market Accounts And Real Estate Investment Trusts To Insurance, Home Ownership, And Tangible Assets Like Gold And CollectiblesWhether You Want To Verse Yourself In 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

  • Paperback
  • 464 pages
  • A Random Walk Down Wall Street
  • Burton G. Malkiel
  • English
  • 26 January 2017
  • 9780393325355

About the Author: Burton G. Malkiel

Is a well-known author, some of his books are a fascination for readers like in the A Random Walk Down Wall Street book, this is one of the most wanted Burton G. Malkiel author readers around the world.