Investing can be simple and accessible to the average person, says financial thought leader and economist Burton Malkiel. Malkiel, author of the investment classic “A Random Walk Down Wall Street,” has 50 years of research to back up his claim. In his latest edition of the book, Malkiel emphasizes that investors would be better off buying and holding a broad-based index fund rather than attempting to buy and sell individual securities or actively managed mutual funds.
Malkiel’s beliefs are supported by the track record of an investor who invested $10,000 in an index fund in 1977 and saw it grow to over $2 million by 2022, while an investor who purchased shares in the average actively managed mutual fund only saw the investment grow to $1.47 million.
Despite the changes in the market and the array of investment products and strategies available, Malkiel remains convinced of the validity of his original thesis. He explains why he still believes in the principles of “A Random Walk Down Wall Street” and offers his perspective on ESG investing, factor investing, and cryptocurrencies.
WEALTHTRACK Episode #1933 broadcast on February 10, 2022
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BURTON MALKIEL
- Author, A Random Walk Down Wall Street
- Legendary Financial Thought Leader
- Ph.D. Economist
- Professor Emeritus, Princeton University
- Investment Committee Member, Rebalance IRA
ACTION POINT
Read: The Fiftieth-Anniversary Edition Of A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy
BOOKSHELF
ONE INVESTMENT
CORE STARTING INVESTMENT
- Start with a U.S. total stock market index fund
- Either a mutual fund or exchange-traded fund
- Be careful about fees
- Now available as low as 2 or 3 basis points
- Make sure it’s low-cost
FROM THE ARCHIVE
Burton Malkiel from the WEALTHTRACK Archives:
John Bogle from the WEALTHTRACK Archives:
WEB EXTRA
A RANDOM WALK’S SUCCESS
A Random Walk Down Wall Street was criticized and even ridiculed by Wall Street and the financial press when it was first published in 1973. Burt Malkiel explains why it survived and eventually flourished.
COOLING ON CHINA
Financial thought leader Burton Malkiel is best known as the author of the investment classic, “A Random Walk Down Wall Street,” but he is also an enthusiastic investor who once believed in the enormous potential of China. He explains why that is no longer the case but still makes the case for investing in emerging markets.
