A Random Walk Down Wall Street Chapter Summary

Book Report for A Random Walk Down Wall Street

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Book Report: A Random walk Down Wall Street

The book, ‘A random Walk down Wall Street’, gives a serious evaluation on the general feeling about the stock market and continues to explain why people are sometimes wrong about the stock market. The Author, Burton G. Malkiel, suggests fundamental guidelines on how young and individual investors can rethink their decisions on investment decisions. The author mixes historical examples where he introduces the Castle-In-The-Air theory, personal feelings and humor.

Chapter one introduces the book and explain the random walk as Burton puts it. In his definition, a random walk is when future directions and steps cannot

From day to day interaction with different people I can concur with the author that people are so much connected to their money. A loss or an increase in the amount will affect them accordingly.

Burton sums the chapter by stating that the valuation theory depends on the long-term projection of the stream of dividends whose rate of growth is hard to estimate. Due to the incurred transaction costs during the investment of real money, he feels that discrediting all the paper techniques is good because their discrediting of efficient-market theory is baseless.

In my opinion, the book is a success as it guides the investor to greater investment returns. Although young in the stock market, I am confident that am not the same one in as much as investment is concerned. When I decide to invest in the stocks, I know the strategy is to purchase and hold. It really shapes the future for young investors and acts as a standard for older investors. I look forward to using the guidelines in this book for better returns.