A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) BY BURTON G. MALKIEL

About the book

In this book, Malkiel takes the readers into an exploration of Wall Street and how an investment works inside it. He encourages common people to invest in the stock market, which is predominated by high-frequency traders and shows them how their investments can succeed. 

The book presents a thorough and research-based portfolio strategy that every beginning trader can follow. Using his years-worth of experience as an economist, investor, and a financial advisor, Malkiel takes readers to a walk-in wall street and shows how a well-varied index of securities is more likely to be a successful investment than a securities portfolio arranged by professionals. 

Review

In this book, the author shows how an individual investor can gain a trading advantage against the market, with proper knowledge about securities and how the market works. In this new edition, many concepts about trading and investing have been expounded due to new processes found in the market today. 

This book is a recommendable read to novice investors who are in the beginning stages of their trading career. The knowledge shared by the author in the book, as well as the historically significant financial events, can guide the novice investor in his or her trading.

About the Author

BURTON G. MALKIEL is a professor of Economics Emeritus at Princeton University. He is a former member of the Council of Economic Advisers and dean of the Yale School of Management. He is the chief investment officer of Wealthfront and a board member of many major corporations, such as Vanguard and Prudential Financial. 

Table of Contents

PREFACE

ACKNOWLEDGMENTS FROM EARLIER EDITIONS

PART ONE: STOCKS AND THEIR VALUE

1. FIRM FOUNDATIONS AND CASTLES IN THE AIR
2. THE MADNESS OF CROWDS
3. SPECULATIVE RUBBLES FROM THE SIXTIES INTO THE NINETIES
4. THE EXPLOSIVE BUBBLES OF THE EARLY 2000s

PART TWO: HOW THE PROS PLAY THE BIGGEST GAME IN TOWN

1. TECHNICAL AND FUNDAMENTAL ANALYSIS
2. TECHNICAL ANALYSIS AND THE RANDOM-WALK THEORY
3. HOW GOOD IS FUNDAMENTAL ANALYSIS? THE EFFICIENT-MARKET HYPOTHESIS

PART THREE: THE NEW INVESTMENT TECHNOLOGY

1. A NEW WALKING SHOE: MODERN PORTFOLIO THEORY
2. REAPING REWARD BY INCREASING RISK
3. BEHAVIORAL FINANCE
4. NEW METHODS OF PORTFOLIO CONSTRUCTION: SMART BETA AND RISK PARITY

PART FOUR: A PRACTICAL GUIDE FOR RANDOM WALKERS AND OTHER INVESTORS

1. A FITNESS MANUAL FOR RANDOM WALKERS AND OTHER INVESTORS
2. HANDICAPPING THE FINANCIAL RACE: A PRIMER IN UNDERSTANDING AND PROJECTING RETURNS FROM STOCKS AND BONDS
3. A LIFE-CYCLE GUIDE TO INVESTING
4. THREE GIANT STEPS DOWN WALL STREET

EPILOGUE