Download A Macat Analysis of Burton G. Malkiel's A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing AudioBook Free
Since it was first printed in 1973, A Random Walk Down Wall structure Street has been a highly influential best seller. Burton G. Malkiel demolishes the idea that investment "experts" can forecast stock price changes and thereby "beat the market." With all available information which could affect the worthiness of any company's shares known very quickly to all shareholders, Malkiel says, shares quickly find the purchase price that demonstrates that information. That is known as the effective market hypothesis. Just what exactly should shareholders do? Because typically, currency markets prices have always risen in the long term, Malkiel recommends buying a broad range of stocks and options to reflect the market price level as a whole - buying an index fund, which does just that - and holding on to them. Two main problems have been leveled against Malkiel's ideas. First, a few famous shareholders (like Warren Buffet) seem to be to do better than the market over the long term, against Malkiel's predictions. Second, the 2007-9 financial meltdown was triggered by securities based on the subprime housing market which were wildly overpriced - which again seems to contradict Malkiel's theory. His answer? The idea was still right in the long term. Prices of these securities did collapse. It just got a few years.
