A Random Walk Down Wall Street
by Burton Gordon Malkiel · first published 1973
67% recommend28% neutral5% critical
Why HN recommends it
Layman-friendly introduction to investing that argues markets are fairly efficient, so diversified index funds beat stock picking and trading. Suits beginners and anyone about to pick stocks.
Summarised by Claude from recommending comments
Using the dot-com crash as an object lesson in how not to manage your portfolio, this is an informative guide to navigating the turbulence of the market and managing investments with confidence. With its life-cycle guide to investing, this book matches the needs of investors at any age bracket.
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Mentions per year
What Hacker News says
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My choice this year is Burton Malkiel's "A Random Walk Down Wall Street"
on “Ask HN: Best book you read in 2011” ↗"A Random Walk Down Wall Street" is THE book I recommend for accessible framework on the different strategies people approach the stock market and investing. http://www.amazon.com/gp/product/0393352242 Edit: WSJ Review: “Talk to 10…
on “Ask HN: How did you learn about stocks and the market?” ↗Matt's article (and the linked one of Scott Adams' advice) is a good and basic foundation. Adding to the reading list, I'd very strongly recommend the following: A Random Walk Down Wall Street by Burton G. Malkiel lays out the basics of portfolio diversification. http://www.powells.com/biblio/1-9780393340747-0 The Great Crash: 1929 by John K. Galbraith tells the story and aftermath of the…
on “Hard-won lessons about money and investing” ↗That question is addressed A Random Walk Down Wall Street by Burton Malkiel (which the OP should read ASAP). If I remember correctly, he suggests figuring out a decided asset allocation and then buying into it over the course of a time period (say 20 months),…
on “Ask HN: Steady 4-5% on $5 million?” ↗The first and best book on investing that you should read: A Random Walk Down Wall Street (http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/039306...). This book has great investing advice; is funny, interesting, and well-written; and clearly explains what's going on behind different…
on “Ask HN: Best books/source to learn about investing?” ↗…that can be rejected by a man-on-the-street as "obviously false"? Hmm, perhaps the man-on-the-street is misunderstanding what they're saying. Two good sources to start with are Malkiel's classic _A Random Walk Down Wall Street_, and William Bernstein's dependable investing guide _The Four Pillars of Investing_.
on “Why I don't trade stocks and (probably) neither should you” ↗I would absolutely recommend reading "A Random Walk Down Wall Street" by Burton Malkiel. Its a great introduction to the theory of efficient markets.
on “Ask HN: playin' the stocks game” ↗A Random Walk Down Wall Street by Burton Malkiel heavily informed my attitude to investment/savings and put to bed any dreams I had of magically day-trading my way to wealth in my spare time. Thinking, Fast and Slow by Daniel Kahneman…
on “Ask HN: What is the best book you have read with the greatest impact on you?” ↗…http://gmplib.org/ If you're philosophically inclined read some existentialists, they deal a lot with irrationality and chaos: http://en.wikipedia.org/wiki/Existentialism If you're financially inclined read Random Walk Down Wall Street: http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/039331 and the Black Swan: http://www.amazon.com/Black-Swan-Impact-Highly-Improbable/dp... you may want to check out his other book as well, it is…
on “Good books or articles on randomness?” ↗This book taught me the fundamentals of passive investing (https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/03933...) and this website is THE online community for Bogle-style, passive investors (https://www.bogleheads.org/), once you understand the basics.
on “Ask HN: What was your best passive income in 2016?” ↗…research on how it's impossible to predict/beat the market like this in reality [1], and this site is obviously designed to prey on the uneducated and naive. [1] For a good intro, see chapter 5 of "A Random Walk Down Wall Street" which talks about "technical analysis", which is exactly what HODLometer is doing -- https://www.amazon.com/gp/product/0393352242
on “HODLometer – was it better to HODL or trade?” ↗…Picking individual stocks is a bad idea. This is assuming your main goal is returns on your investment. Picking individual stocks or even 30 stocks is basically gambling. Really recommend reading "A Random Walk Down Wall Street": https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/03933...
on “Ask HN: How do you manage your financials?” ↗…the charts, so maybe don't buy them. (Macroeconomics & Financial Systems could be cheap if bought used) After that some light reading for general audience with interesting viewpoints and lessons: - A Random Walk Down Wall Street by Malkiel - Common Sense on Mutual Funds by John Bogle - The Alchemy of Finance by George Soros (Sorosls theory of reflexivity in finance, nontechnical take on nonlinear dynamics in the markets)
on “Ask HN: Book recommendations for understanding financial systems?” ↗…Make Today - by Larry Swedroe Financial History # Against the Gods and Capital Ideas - by Peter L. Bernstein # Devil Take the Hindmost: A History of Financial Speculation - by Edward Chancellor # A Random Walk Down Wall Street - by Burton Malkiel Like others here have mentioned, http://www.bogleheads.org/ is a great forum for Vanguard investors.
on “Ask HN: Best books/source to learn about investing?” ↗…Benjamin Graham. Also read all of Warren Buffett's Letters from the Chairman - they're all up on the Berkshire Hathaway website. Peter Lynch's books are good too. I see a lot of people here recommending A Random Walk Down Wall Street, which is a good book, but you're going to finish it and say "This investing stuff is too complicated for me. I think I'll just put my money in index funds." Which is perfectly sensible investment advice,…
on “Ask HN: Best books/source to learn about investing?” ↗