Thursday, 4 August 2016

A Random Walk Down Wall Street - Part One 1: Stocks and Their Value


1. Investors would be far better off buying and holding an index fund than attempting to buy and sell individual securities or actively managed mutual funds.

2. The basic thesis of the book: the market prices stocks so efficiently that a blindfolded chimpanzee throwing darts at the Wall Street Journal can select a portfolio that performs as well as those managed by the experts.

3. Through the past 30 years, more than two-thirds of professional portfolio managers have been outperformed by the unmanaged S&P 500 Index.

4. One’s capacity for risk-bearing depends importantly upon ones’ age and ability to earn income from noninvestment sources. It is also the case that the risk involved in most investments decreases with the length of time the investment can be held. Thus, optimal investment strategies must be age-related. 

A Random Walk Down Wall Street - The Get Rich Slowly but Surely Book Burton G. Malkiel

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