Title A Random Walk Down Wall Street
Subtitle The Time-Tested Strategy for Successful Investing (Completely Revised and Updated)
Author Burton G. Malkiel
ISBN 9781324002185
List price USD 29.95
Price outside India Available on Request
Original price
Binding Hardbound
No of pages 432
Book size 165 x 241 mm
Publishing year 2019
Original publisher W. W. Norton & Company
Published in India by .
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
Status New Arrival
About the book
  
 

Reviews:

“Do you want to do well in the stock market? Here’s the best advice. Scrape together a few bucks and buy Burton Malkiel’s book. Then take what’s left and put it in an index fund.”
Los Angeles Times

 

“Imagine getting a week-long lesson on investing from someone with the common sense of Benjamin Franklin, the academic and institutional knowledge of Milton Friedman and the practical experience of Warren Buffett. That’s about what awaits you in the latest edition of this must-read by Burton Malkiel,”
—Barron’s

 

“Not more than half a dozen really good books about investing have been written in the past fifty years. This one may well belong in the classics category.”
— Forbes

 

“If one of your New Year’s resolutions is to improve your personal finances, here’s a suggestion: Instead of picking up one of the scores of new works flooding into bookstores, reread an old one:
A Random Walk Down Wall Street.
New York Times

 

“An engagingly written and wonderfully argued tome.”
Money

 

“A useful introduction to investing with lots of common-sense advice.”
Wall Street Journal


Description:

One of the “Few Great Investment Books”* Ever Written

In a time of increasing inequality, when high-frequency traders and hedge-fund managers seem to tower over the average investor, Burton G. Malkiel’s classic and gimmick-free investment guide is now more necessary than ever. Rather than tricks, what you’ll find here is a time-tested and thoroughly research-based strategy for your portfolio. Whether you’re considering your first 401k contribution or contemplating retirement, this fully-updated edition of A Random Walk Down Wall Street should be the first book on your reading list.

In A Random Walk Down Wall Street you’ll learn the basic terminology of “the Street” and how to navigate it with the help of a user-friendly, long-range investment strategy that really works. Drawing on his own varied experience as an economist, financial adviser, and successful investor, Malkiel shows why an individual who buys over time and holds a low-cost, internationally diversified index of securities is still likely to exceed the performance of portfolios carefully picked by professionals using sophisticated analytical techniques. In this new edition, Malkiel provides a brand-new section on the recent bubble in cryptocurrencies like Bitcoin, as well as valuable new material on “tax-loss harvesting”—the crown jewel of tax management. He also presents a critical analysis of two recently popular investment-management techniques: factor investing and risk parity.

On top of all this, the book’s classic lifecycle guide to investing, which tailors strategies to investors of any age, will help you plan confidently for the future. You’ll learn how to analyze the potential returns, not only for basic stocks and bonds but 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 collectibles. Individual investors of every level of experience and risk tolerance will find throughout the book the critical facts and step-by-step guidance they need to protect and grow their hard-earned dollars.

With the prevailing wisdom changing on an almost daily basis, Malkiel’s reassuring and vastly informative volume remains the best investment guide money can buy.



Contents:

Preface

Acknowledgments from Earlier Edition


Part 1. Stocks and Their Value

Chapter 1: Firm Foundations And Castles In The Air • What Is a Random Walk? • Investing as a Way of Life Today • Investing in Theory • The Firm-Foundation Theory • The Castle-in-the-Air Theory • How the Random Walk Is to Be Conducted

Chapter 2: The Madness of Crowds • The Tulip-Bulb Craze • The South Sea Bubble • Wall Street Lays an Egg • An Afterword

Chapter 3: Speculative Bubbles From The Sixties Into The Nineties • The Sanity of Institutions • The Soaring Sixties • The New “New Era”: The Growth-Stock/New-Issue Craze • Synergy Generates Energy: The Conglomerate Boom • Performance Comes to the Market: The Bubble in Concept Stocks • The Nifty Fifty • The Roaring Eighties • The Return of New Issues • ZZZZ Best Bubble of All • What Does It All Mean? • The Japanese Yen for Land and Stocks

Chapter 4: The Explosive Bubbles of the Early 2000s • The Internet Bubble • A Broad-Scale High-Tech Bubble • Yet Another New-Issue Craze •
TheGlobe.com • Security Analysts $peak Up • New Valuation Metrics • The Writes of the Media • Fraud Slithers In and Strangles the Market • Should We Have Known the Dangers?
• The U.S. Housing Bubble and Crash of the Early 2000s • The New System of Banking • Looser Lending Standards • The Housing Bubble • Bubbles and Economic Activity • Does This Mean That Markets Are Inefficient? • The Bubble in Cryptocurrencies • Bitcoin and Blockchain • Is Bitcoin Real Money? • Should the Bitcoin Phenomenon Be Called a Bubble? • What Can Make the Bitcoin Bubble Deflate?

 

Part 2. How the Pros Play the Biggest Game in Town

Chapter 5: Technical and Fundamental Analysis • Technical versus Fundamental Analysis • What Can Charts Tell You? ‘ • The Rationale for the Charting Method • Why Might Charting Fail to Work? • From Chartist to Technician • The Technique of Fundamental Analysis • Three Important Caveats • Why Might Fundamental Analysis Fail to Work? • Using Fundamental and Technical Analysis Together

Chapter 6: Technical Analysis And The Random-Walk Theory • Holes in Their Shoes and Ambiguity in Their Forecasts • Is There Momentum in the Stock Market? • Just What Exactly Is a Random Walk? • Some More Elaborate Technical Systems • The Filter System • The Dow Theory • The Relative-Strength System • Price-Volume Systems • Reading Chart Patterns • Randomness Is Hard to Accept • A Gaggle of Other Technical Theories to Help You Lose Money • The Hemline Indicator • The Super Bowl Indicator • The Odd-Lot Theory • Dogs of the Dow • January Effect • A Few More Systems • Technical Market Gurus • Appraising the Counterattack • Implications for Investors

Chapter 7: How Good Is Fundamental Analysis? The Efficient-Market Hypothesis • The Views from Wall Street and Academia • Are Security Analysts Fundamentally Clairvoyant? • Why the Crystal Ball Is Clouded • The Influence of Random Events • The Production of Dubious Reported Earnings through “Creative” Accounting Procedures • Errors Made by the Analysts Themselves • The Loss of the Best Analysts to the Sales Desk, to Portfolio Management, or to Hedge Funds • The Conflicts of Interest between Research and Investment Banking Departments • Do Security Analysts Pick Winners? The Performance of the Mutual Funds • The Semi-Strong and Strong Forms of the Efficient-Market Hypothes (EMH)


Part 3. The New Investment Technology

Chapter 8: A New Walking Shoe: Modern Portfolio Theory • The Role of Risk • Defining Risk: The Dispersion of Returns • lllustration: Expected Return and Variance Measures of Reward and Risk • Documenting Risk: A Long-Run Study • Reducing Risk: Modern Portfolio Theory (MPT) • Diversification in Practice

Chapter 9: Reaping Reward By Increasing Risk • Beta and Systematic Risk • The Capital-Asset Pricing Model (CAPM) • Let’s Look at the Record • An Appraisal of the Evidence • The Quant Quest for Better Measures of Risk: Arbitrage Pricing Theory • The Fama-French Three-Factor Model • A Summing Up

Chapter 10: Behavioral Finance • The Irrational Behavior of Individual Investors • Overconfidence • Biased Judgments • Herding • Loss Aversion • Pride. and Regret • Behavioral Finance and Savings • The Limits to Arbitrage • What Are the Lessons for Investors from Behavioral Finance? • Avoid Herd Behavior • Avoid Overtrading • If You Do Trade: Sell Losers, Not Winners • Other Stupid Investor Tricks • Does Behavioral Finance Teach Ways to Beat the Market?

Chapter 11: New Methods of Portfolio Construction: Smart Beta and Risk Parity • What Is “Smart Beta”? • Four Tasty Flavors: Their Pros and Cons • 1. Value Wins • 2. Smaller Is Better • 3. There is Some Momentum in the Stock Market • Low-Beta Stocks Return as Much as High- Beta Stocks • 4. What Could Go Wrong? • Blended Factor Strategies • Blended Funds in Practice • Dimensional Fund
Advisors (DFA) • Research Affiliates Fundamental Index TM (RAFI) • Goldman Sachs Active Beta ETF • Equally-Weighted Portfolios
• Implications for Investors • Risk Parity • The Risk-Parity Technique • Safe Bonds May Also Provide Opportunities to Employ Risk-Parity Techniques • Risk Parity versus the Tradional 60/40 Portfolio • Dalio’s All Weather Fund • What Could Go Wrong? • Concluding Comments


Part 4. A Practical Guide For Random Walkers And Other Investors

Chapter 12: A Fitness Manual For Random Walkers And Other Investors • Exercise 1: Gather the Necessary Supplies • Exercise 2: Don’t Be Caught Empty-Handed: Cover Yourself with cash • Cash Reserves • Insurance • Deferred Variable Annuities • Exercise 3: Be Competitive-Let the Yield on Your Cash Reserve Keep Pace with Inflation • Money-Market Mutual Funds (Money Funds) • Bank Certificates of Deposit (CDs) • Internet Banks • Treasury BillsTax-Exempt Money-Market Funds • Exercise 4: Learn How to Dodge the Tax Collector • Individual Retirement Accounts • Roth IRAs • Pension Plans • Saving for College: As Easy as 529 • Exercise 5: Make Sure the Shoe Fits: Understand Your Investment Objectives • Exercise 6: Begin Your Walk at Your Own Home—Renting Leads to Flabby Investment Muscles • Exercise 7: How to Investigate a Promenade through Bond Country • Zero-Coupon Bonds Can Be Useful to Fund Future Liabilities • No-Load Bond Funds Can Be Appropriate Vehicles for Individual Investors • Tax-Exempt Bonds Are Useful for High-Bracket Investors • Hot TIPS: Inflation-Indexed Bonds • Should You Be a Bond-Market Junkie? • Foreign Bonds • Exercise 7A: Use Bond Substitutes for Part of the Aggregate Bond Portfolio during Eras of Financial Repression • Exercise 8: Tiptoe through the Fields of Gold, Collectibles, and Other Investments • Exercise 9: Remember That Investment Costs Are Not Random; Some Are Lower Than Others • Exercise 10: Avoid Sinkholes and Stumbling Blocks: Diversify Your Investment Steps • A Final Checkup

Chapter 13: Handicapping The Financial Race: A Primer In Understanding And Projecting Returns From Stocks And Bonds • What Determines the Returns from Stocks and Bonds? • Four Historical Eras of Financial Market Returns • Era I: The Age of Comfort • Era II: The Age of Angst • Era III: The Age of Exuberance • Era IV: The Age of Disenchantment • The Markets from 2009 through 2014 • Handicapping Future Returns

Chapter 14: A Life-Cycle Guide To Investing • Five Asset-Allocation Principles • Risk and Reward Are Related • Your Actual Risk in Stock and Bond Investing Depends on the Length of Time You Hold Your Investment • Dollar-Cost Averaging Can Reduce the Risks of Investing in Stocks and Bonds • Rebalancing Can Reduce Investment Risk and Possibly Increase Returns • Distinguishing between Your Attitude toward and Your Capacity for Risk • Three Guidelines to Tailoring a Life-Cycle Investment Plan • Specific Needs Require Dedicated Specific Assets • Recognize Your Tolerance for Risk • Persistent Saving in Regular Amounts, No Matter How Small, Pays Off • The Life-Cycle Investment Guide • Life-Cycle Funds • Investment Management Once You Have Retired • Inadequate Preparation for Retirement • Investing a Retirement Nest Egg • Annuities • The Do-It-Yourself Method

Chapter 15: Three Giant Steps Down Wall Street • The No-Brainer Step: Investing in Index Funds • The Index-Fund Solution: A Summary • A Broader Definition of Indexing • A Specific Index-Fund Portfolio • ETFs and Taxes • The Do- It -Yourself Step: Potentially Useful Stock-Picking Rules • Rule 1: Confine stock purchases to companies that appear able to sustain above-average earnings growth for at least five years • Rule 2: Never pay more for a stock than can reasonably be justified by a firm foundation of value • Rule 3: It helps to buy stocks with the kinds of stories of anticipated growth on which investors can build castles in the air • Rule 4: Trade as little as possible • The Substitute-Player Step: Hiring a Professional Wall Street Walker • The Morningstar Mutual-Fund Information Service • The Malkiel Step • A Paradox • Investment Advisers • Some Last Reflections on Our Walk • A Final Word

Epilogue

A Random Walker’s Address Book and Reference Guide to Mutual Funds and ETFs

Index


About the Author:

Burton G. Malkiel is the Chemical Bank Chairman’s Professor of Economics Emeritus at Princeton University. He is a former member of the Council of Economic Advisers, dean of the Yale School of Management, and has served on the boards of several major corporations, including Vanguard and Prudentials Financial. He is the chief investment officer of Wealthfront.


Target Audience:

Students and academicians of Finance and those who are interested in Stock Market.

 

 
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