A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Eleventh Edition)

Authors: Burton G. Malkiel

Key Ideas

1. The stock market is efficient and unpredictable. This means that it is difficult to consistently outperform the market by picking individual stocks or timing the market.

2. A passive investing strategy, such as investing in low-cost index funds, is a more reliable and successful long-term investment approach than active investing.

3. Diversification is key to reducing risk in a portfolio. By investing in a wide range of assets across different sectors and geographies, investors can reduce the impact of any single investment's performance.

4. Asset allocation, or the mix of different asse....
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Quiz

1. What is the main idea of Burton G. Malkiel's book?

The stock market is efficient and unpredictable.

Active investing is a more successful approach than passive investing.

Diversification is not necessary for a successful investment strategy.

Market timing is a reliable strategy for consistent returns.

2. What is the recommended approach for long-term investing according to Malkiel?

Market timing and short-term trading

Active investing and speculating

Passive investing and dollar-cost averaging

Speculating and fundamental analysis

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