In A Random Walk Down Wall Street you will discover how much fun it can be to beat the
pros at their own game - and learn a user-friendly, long-range investment strategy that
really works. Skilled in the ways of Wall Street, Malkiel shows why a broad portfolio of
stocks selected at random will match or exceed the performance of stocks carefully picked
by professionals using sophisticated analytical techniques. This latest edition includes
an update of Malkiel's invaluable "life-cycle guide to investing," showing how
to match an investment strategy to each stage of your life.
Table of Contents
Preface 13
Acknowledgments from Earlier Editions 17
Pt. 1 Stocks and Their Value
1 Firm Foundations and Castles in the Air 23
2 The Madness of Crowds 35
3 Stock Valuation from the Sixties through the Nineties 55
4 The Firm-Foundation Theory of Stock Prices 95
Pt. 2 How the Pros Play the Biggest Game in Town
5 Technical and Fundamental Analysis 117
6 Technical Analysis and the Random-Walk Theory 138
7 How Good Is Fundamental Analysis? 165
Pt. 3 The New Investment Technology
8 A New Walking Shoe: Modern Portfolio Theory 199
9 Reaping Reward by Increasing Risk 220
10 The Assault on the Random-Walk Theory: Is the Market Predictable after All? 240
Pt. 4 A Practical Guide for Random Walkers and Other Investors
11 A Fitness Manual for Random Walkers 277
12 Handicapping the Financial Race: A Primer in Understanding and Projecting Returns from
Stocks and Bonds 326
13 A Life-Cycle Guide to Investing 351
14 Three Giant Steps Down Wall Street 372
A Random Walker's Address Book and Reference Guide to Mutual Funds 409
Bibliography 429
Index 445
428 pages, Paperback