Introduction to “A Malkiel Random Walk Down Wall Street” If you are a new investor interested in the history of investing or how to make investments, buy this book by Burton G. Malkiel. This book is ideal for any experienced investor who also wants to improve their knowledge of investment techniques and theories. There aren't many books that have been written about investing. A Random Walk Down Wall Street is divided into four parts that include: Stocks and Their Value, How the Pros Play the Biggest Game in Town, New Investing Technology, and A Practical Guide for Random Walkers and Other Investors. In total, there are fifteen chapters that cover many key points that many will find interesting and informative. The first edition of A Random Walk Down Wall Street was written over forty years ago. Burton Malkiel's first advice to investors in his preface is that "investors would be far better off buying and holding an index fund than trying to buy and sell individual securities or actively managed funds" (Malkiel, page 17). You will learn that buying and holding all the stocks in the average bond market will most likely outperform professionally managed funds. I agree with Burton's theory on this strategy. He uses an example on page 17 showing how an initial investment of ten thousand dollars in an index fund would have a higher return than an investment of shares purchased from a managed fund. The author created this tenth edition of the book because significant changes have taken place in the financial instruments available. Many investors can benefit from using newer financial instruments and critical analysis. The tenth edition of this book also provides a clear description of the academic ...... middle of paper ...... particularly rare. I agree with this statement because any flaw in the system or process can lead to poor judgment or evaluation. To keep things simple, I would use my intuition and research to invest and build a portfolio. If the portfolio is successful, I will feel better and proud of myself for making the decisions I did. If I used a firm or broker to manage my portfolio and there were significant losses, I would probably sit there in awe and blame others for what happened. It is important to understand the risk-return tradeoffs available (Malkiel, page 415). The author considers investing as a game. I agree with this statement because in any game it is too much fun to give up. New York: WW Norton, 2012. Print.