The author’s main idea in this book is that everyone should have a core portfolio of index funds. If one likes the challenge of individual stock picking, then apportion a part of the investing capital to it, but still keeping the core of index funds.
The reason I like this book is that it gives such a wide variety of investment/finance linked topics. It ranges from the stock market crashes in the past, the different types of valuation in different eras, the pros and cons of TA, FA and EMH, brief understanding of modern portfolio theory (MPT) and the related Capital asset pricing model (CAPM). As if it’s not enough, there are chapters on behavioral finance, personal finance and how guide for ‘random walkers’ in the stock market. Read more...By: La Papillion
A Random Walk Down Wall Street, a book by Burton G.Malkiel, is one of those must-read books on investment/finance. I think there are 9 different editions of it and the first edition was out in 1973. I must say this book is really a good read as the author talks about a variety of topics. The author is bent towards indexing for the majority of people who do not like the hard work of picking stocks. It comes as a surprise for me too when I realized that this book is not really about the efficient market hypothesis (EMH). I feel that the stance is almost similar to Benjamin Graham in The Intelligent Investor, where he proposed about the passive and enterprising investor.
The author’s main idea in this book is that everyone should have a core portfolio of index funds. If one likes the challenge of individual stock picking, then apportion a part of the investing capital to it, but still keeping the core of index funds.
The reason I like this book is that it gives such a wide variety of investment/finance linked topics. It ranges from the stock market crashes in the past, the different types of valuation in different eras, the pros and cons of TA, FA and EMH, brief understanding of modern portfolio theory (MPT) and the related Capital asset pricing model (CAPM). As if it’s not enough, there are chapters on behavioral finance, personal finance and how guide for ‘random walkers’ in the stock market. Read more...
The author’s main idea in this book is that everyone should have a core portfolio of index funds. If one likes the challenge of individual stock picking, then apportion a part of the investing capital to it, but still keeping the core of index funds.
The reason I like this book is that it gives such a wide variety of investment/finance linked topics. It ranges from the stock market crashes in the past, the different types of valuation in different eras, the pros and cons of TA, FA and EMH, brief understanding of modern portfolio theory (MPT) and the related Capital asset pricing model (CAPM). As if it’s not enough, there are chapters on behavioral finance, personal finance and how guide for ‘random walkers’ in the stock market. Read more...
