True enough, investment and financial wisdom are dynamic. More so, subjective that it takes different shapes on an almost regular basis. With that, Burton G, Malkiel’s reassuring and highly intuitive edition, was written with a primary aim of concretizing investment knowledge.
As there is an imbalance of power and that high-profiled traders and hedge-financed managers capitalize their position to go over average investors, Malkiel’s book, A Random Walk Down Wall Street which is an ultimate investment guide, is deemed highly crucial than ever. Far from strategy discussion, this book elucidates portfolio strategies derived from thorough and intensive research.
This book centers on the term “the Street” to how to properly use such through the utilization of a client-oriented, long-term investment technique that is proven to be favorable and effective. Insights presented in the book were mainly from the author’s personal experience as an economist, financial adviser, and investor. Knowledge gained from years of experience enabled Malkiel to discuss why low-cost and small portfolios are more likely to succeed compared to those portfolios equipped with advanced instruments and strategies.
This book has an additional section that presents newly developed concepts and techniques such as bitcoin. In line with this, the lifecycle framework for investment lets investors personalize and pick their own preferred strategies so that one will develop a feasible investment framework.
ABOUT THE AUTHOR
Burton G. Malkiel is a retired professor of Economics from Princeton University. Previously, he worked as an associate at the Council of Economic Advisers and as a dean at Yale School of Management. In addition to this, he is also the head investment officer of Wealthfront.
TABLE OF CONTENTS
Part One- Stocks and Their Value
- Firm Foundations and Castles in the Air
- The Madness of Crowds
- Speculative Bubbles from the Sixties into the Nineties
- The Explosive Bubbled of the Early 2000s
Part Two- How the Pros Play the Biggest Game in Town
- Technical and Fundamental Analysis
- Technical Analysis and the Random-Walk Theory
- How Good is Fundamental Analysis? The Efficient- Market Hypothesis
Part Three- The New Investment Technology
- A New Walking Shoe: Modern Portfolio Theory
- Reaping reward by Increasing Risk
- Behavioral Finance
- New Methods of Portfolio Construction: Smart Beta and Risk Parity
Part Four- A Practical Guide for Random Walkers and Investors
- A Fitness Manual for Random Walkers and Other investors
- Handicapping the Financial Race: A Primer in Understanding and Projecting Returns from Stocks and Bonds
- A Life-Cycle Guide to Investing
- Three Giant Steps Down Wall Street