Summary of Burton Malkiel’s “A Random Walk Down Wall Street”
Burton Malkiel authors the book “A Random Walk Down Wall Street”, highlighting several investing strategies, truisms, myths, and axioms. According to the book, Malkiel seems to have his central premise that index funds are better investment options to an individual than other strategies used for selecting stocks. This piece provides a summary of four chapters divided into two parts: part 1 having chapters 1 and 2, and part 2 having chapters 4 and 14.
Chapter 1: Firm Foundations and Castles in the Air
In the first chapter, Burton starts by defining random walk as an instance in which future occurrences cannot be predicted based on the past occurrences ( ...