The Random Walk Guide To Investing

by Burton G. Malkiel

Simply put, the essential first book for any investor. Based on the million-copy seller A Random Walk Down Wall Street , this concise new guide by influential and irreverent author Burton G. Malkiel takes the mystery out of personal finance by outlining Malkiel's own ten-point plan for success. Easy to read and easy to follow, this practical book aimed at the investment novice cuts through the jargon to give readers the confidence and knowledge to make wise investment decisions that will provide consistent returns.

Genres: Finance, Nonfiction, Personal Finance, Money, Business, Economics, Self Help

224 pages, Paperback

First published January 1, 2003

Reviews

[N · Rating 3 out of 5]

Solid, Sensible and Pragmatic advices for beginners! Burton often quotes others writers and investors to reinforce his rules.

1. Start now not later ( Investment is about time and not timing)
2. Keep a steady course.
3. Don't get caught empty handed.
4. Stuff the tax collector.
5. Match your portfolio to your personality.
6. Diversity reduces adversity.
7. Pay yourself not the piper.
8. Bow down to the wisdom of the market.
9. Back Proven Winners.
10. Don't be your worst enemy.

[Jacob · Rating 3 out of 5]

Some ok guidelines although I don't think his claim that he will tell you everything you need to know in 200 pages is really very valid. His main topic is investing for retirement and his main advice is to invest in indices through your company's 401k and IRA programs as soon as possible. So... good advice, but not really that revolutionary.

I think the most interesting thing that came of this book is by reading Rich Dad, Poor Dad at the same time and seeing the arguments for and against calling your house an "asset." The Rich Dad, Poor Dad Kiyosaki guy is against saying your house is an asset because it doesn't make you money, but actually sucks money out of your pocket. Malkiel uses the argument that you are "paying yourself" when you're paying the mortgage. I'm not sure which side I fall on.

[C · Rating 2 out of 5]

This book is waaaaaaaay outdated, in a really sad, what-will-our-future-look-like, nothing-will-ever-be-the-same, no-rules-apply-anymore-to-the world, how-will-I-ever-afford-anything way. Reading the basics (emergency fund, retirement contributions, etc. etc. etc.) again was good though, and it's not really this guy's fault that I picked up his book eight years later during an unanticipated recession brought on by the immorality and selfishness of the rich assholes running the banks. Viva la revolucion! Anybody?

[Suzi · Rating 4 out of 5]

Good, sound advice. It could possibly use some more details, but they way it was written is great for anyone who needs things explained simply. I would suggest this book to anyone who is reading multiple books about personal finances and investing. It reaffirmed some things I'd read in other books while also giving me new ideas to consider.

[Charley · Rating 4 out of 5]

This is a great primer on investing and it's written in a very straightforward manner. He's big on index funds, but also gives some good advice on sound financial planning.

[Alexander Zvonov · Rating 5 out of 5]

Коротко и по теме. Для начала самое то

[Darin Shreves · Rating 3 out of 5]

Four stars for content and lessons, but only two stars for writing and some introduced but unexplained ideas, balancing out to three stars.

[Andrew Njoo · Rating 4 out of 5]

Book review - random walk guide to investing - malkiel 2003


chapter 1 - fire your advisor!
•Advisor knows little more than you
•4 types of investment - cash, RE, bonds, stocks.
of the 4 types only RE tends to shine when inflation ^

•start saving early
•save regularly - greatest man in Babylon (put 10% of earnings into savings)
make a budget
change a spending habit or two

•downsize your lifestyle
•millionaire next door - millionaires don’t look like millionaires

La Rouchefoucauld: ‘Before desiring something passionately, one should inquire into the happiness of the man who possesses it.’

•investment allocation depends on time horizon, risk appetite, temperament (to loss),

•dollar cost averaging - if you are a net buyer you should be happier with lower prices (warren buffet - hamburger analogy)

•look out for (fund) expenses

•use a discount broker vs a full service advisor

Jack Bogle - listen to the market. It’s highly efficient and prices incorporate virtually all information.

•overconfidence, herding,

[Abraham Lahlou · Rating 4 out of 5]

Although a little outdated, this book is a decent resource for aspiring and wannabe investors as it lays out a few strategies to investing safely and profitably in the long-run, such as diversified index funds.

Surely, passive, low-cost index funds will beat 90+ percent of actively managed funds in the long-run and most fund managers can’t even outrun the indexes they’re trying to beat over time. And because they’re not actively managed, they can certainly not beat the stock market and their holdings are hardly changed. Furthermore, index funds are more tax effective and are less pricey to buy. Decent revenue is being made with disproportionate fees and deal costs associated with actively managing funds and this is likely the key reason this info is less talked about.

From a starter’s standpoint, I’d give this book a 4

[Robert · Rating 4 out of 5]

I read this to get a quick overview of Malkiel's main thesis from A Random Walk down Wall Street. Anyone thinking of reading the other book but put off by its being longer should definitely read this one. Anyone new to investing should read this book and hopefully never share any money with the witch doctors of Wall street and walk the other direction, fast, whenever the words "This time, its different" are uttered.

I have since read A Random Walk Down Wall Street and heartily recommend it.

And where ARE the customer's yachts?

[Joey · Rating 4 out of 5]

This is a good introduction to investing. It is a great guide to help a beginner understand the basics of investing. There are several principles that I have implemented in my personal strategy and I am very happy that I discovered them in this book.

I recommend this book if you want some good general ideas of how to handle your investments. If you are really into investing I'm sure there are other books that really dig deeper.

[Mark · Rating 4 out of 5]

I've been reading a lot of books lately on the financial sector - most of them seem to be aligning on two things: the efficient market theory and the (related) random walk theory. This book is a fantastic primer to both and gives salient and practical pointers for investing -if- you subscribe to these theories.

[Northern Credit Union · Rating 5 out of 5]

Investing can be overwhelming, and there is no secret way to get rich quick. This book offers ten very simple, time-tested rules that can build wealth and provide retirement security. You can think of this book as tips to slowly get rich, which is the best you’re going to get (unless you win the lottery).
Judy Mills
Northern Wealth Management

[Daniel Dawson · Rating 3 out of 5]

Good book, but dissatisfying because it only skims the surface. Provides a good introduction though.

"Procrastination is the natural assassin of opportunity."

"Trust in time, rather than timing."

"Before desiring something passionately, one should inquire into the happiness of the man who possesses it." -La Rouchefoucauld

[Andy · Rating 5 out of 5]

Simple, effective personal investing advice. I have read his longer book "A Random Walk Down Wallstreet" (I am personally biased and love and follow Burton's advice in "A Random Walk Down Wallstreet"). This book is exactly what it claims - a guide. The quick and short advice Burton gives is simple to follow and easy to replicate.

[Luis · Rating 5 out of 5]

I very smart guide to making your money work for you and not the other way around. If you want to become an instand millionaire this is not for you. If you want to build up safe and reliable ways of increasing your wealth this is the book for you.

[Tim Chang · Rating 4 out of 5]

This is a very simple, easy-to-read, yet fundamentally sound book on investing. Perfect for people who have no idea where to start when it comes to investing, but also appropriate for people who are familiar with investing, but need some solid advice.

[Sixtus Atabong · Rating 4 out of 5]

Easy to read and understand. Proven guide for anyone planning to not only get out of debt but work towards financial independence. Best takeaway from this book is learning how to pay yourself, not the bankers. I strongly recommend this book to anyone.

[Liz · Rating 4 out of 5]

A good primer on investments and personal finance. Similar in a lot of ways to Dilbert's advice but with more detail. A bit low-level for me, but would recommend to someone trying to figure out how this all works.

[John-Philip · Rating 4 out of 5]

Absolutely a recommended read if you're curious in growing your money in a sensible way. His tips are the same as I've heard several times before but he shows data to prove his point, which I liked.

[Alex · Rating 4 out of 5]

Pretty easy read and handy for beginner investors

[Jordan · Rating 5 out of 5]

This is a fantastic no-bullshit guide about how to invest. I love his rules.

[EG Gilbert · Rating 5 out of 5]

Overall Impressions

Excellent guide to investing basics. It’s under 200 pages and still very relevant because it sticks to fundamentals. Recommendations are to use a slow and steady approach, and the author is very aware of behavioral economics and how human behavior can be self-defeating.

The Basic Points

Basic Point 1: Don’t pay an advisor. Anyone with the ability to consistently and accurately forecast the market would be so wealthy they don’t need to sell their expertise to the general public.

Basic Point 2: Focus on four investment categories: Cash, Bonds, Stocks, and Real Estate. “Things” are not investments (e.g. collectibles, gold, etc.) because they are costly to store and protect, and they return no interest or dividends.

Basic Point 3: Risk vs Return. In ascending order of risk and volatility: cash (and equivalents such as T-bills and Gov’t Bonds), Bonds, Stocks, then Real Estate.
Diversify across asset classes. It preserves capital over the long term an allows it more time to grow.

The Rules

Rule #1: Start saving now. The power of compound interest. “Trust in time rather than timing.” “You can only get poor quickly. To get rich you will have to do it slowly, and you have to start now.”

Rule #2: Regular Savings

Rule #3: Insurance and Cash Reserves

Rule #4: Reduce taxes

Rule #5: Match allocations to your risk capacity and risk temperament.

Rule #6: Diversity reduces adversity

Rule #7: Pay yourself first. Pay off credit cards. Avoid funds with fees.

Rule #8: Leverage the market. Missing the few best days over decades dramatically lowers long term gains.

Rule #9: Use index funds. Actively managed funds underperform the market by the amount of management fees and transaction expenses.

Rule #10: Don’t be your own worst enemy. Avoid overconfidence, herding, and other psychological pitfalls.

Summary

Over time you beat professionally managed funds with regular savings into a program of index funds diversified over asset classes if you stay disciplined and match your allocations to your timeline.

[Иван Зубофф · Rating 1 out of 5]

Кринж.

Книга кажется хорошей, но не для меня и не для тебя, дорогой читатель моей рецензии. Эту книгу написал именитый американский инвестор и профессор, но... Но о чём и для кого? О том, как более-менее обеспеченно жить на пенсии (!), если ты -- американский (!) реднек (!), которому некогда разбираться в тонкостях экономики. Раунд!

Я не знаю, зачем эту книгу перевели на русский. Не верьте названию! Там столько внимания уделяется чисто американским темам, что диву даёшься, какой от неё толк отечественному читателю. Я понимаю, может быть интересно, как всё устроено за бугром, но тут нет подробного разбора, тут какие-то бытовые рецепты. Слишком просто и слишком про США.

Послушал пару часов и бросил. За это время автор, кажется, ни разу не поведал мне об инфляции, зато очень гладко застелил о фантастической выгоде от сложных процентов на больших интервалах времени. Чтобы встретить старость с деньгами, автор предлагает экономить, в том числе на мелочах. Это неплохой совет, но... а может, можно больше зарабатывать вместо этого или в дополнение к этому? Такой информации я в книге не узрел. Видимо, по мнению автора это уже слишком сложно для читателей.

[Евгений Бурмистров · Rating 3 out of 5]

Про русскую версию.
Книга хорошая, но до 4* не дотягивает, как ни крути.
Плюсы:
- основной посыл просто огонь
- некоторые неочевидные вещи (застрахуй себя, если кормишь семью)
Минусы:
- куча воды, 50%
- очень слабая адаптация под Россию. Зачем мне про 401к счета?
- совсем очевидные вещи, типа сначала оплати кредитку
- и я повторюсь про слабую адаптацию под Россию. Некоторых финансовых инструментов просто нет

[Иван · Rating 4 out of 5]

Данная книга будет полезной для тех, кто недавно начал или только собирается заняться инвестированием. Большинство советов, представленных здесь, помогут избежать ошибок, связанных с неправильным управлением своих финансовых активов. Однако, на мой взгляд, второе правило, которое посвящено экономии своих средств, является слишком строгим, потому что откладывая на будущее, не стоит забывать и о настоящем.

[Moritz · Rating 4 out of 5]

Like a short summary of "A random walk down wallstreet". This pretty much omits the scientific and rather lengthy 'why' and skips to the 'so what now?' part. So the advice is just as valuable, but with less substance to back it up.

Better read 'A random walk down wallstreet' if you have the time. Otherwise read this.

[Vladimir Tikhomirov · Rating 4 out of 5]

Good book which once again reminds about portfolio diversification. Moreover the author says that on the long run it is almost impossible to win the market. Thus, the index funds are the way to go. Too easy, too simple, but passive with good results.

[Brandon Rebel · Rating 5 out of 5]

An easy enough read, probably 3 stars for many, but the message is so damn important that it’s overall rating soars.

[Jurbler · Rating 3 out of 5]

Aww yiss imma b rich