Random Walk
 

A certain poster on PA has the following as his signature:

"Consistent profits can only be made on the basis of analysis that is far from obvious to the majority. - anonymous guru"

A Random Walk Down Wall Street(1973) by Burton Gordon Malkiel disagrees with this statement. I have taken the random walk theory to heart and have limited my investments to index funds.

I think it was Barrons who tested Malkiel's ideas with what the called the Dart Fund. No actual investments were made but a fictitious portfolio of stocks was selected by throwing darts at the Wall Street Journal. As I recall the fund did well but eventually, due to splits, mergers, etc., it became to complex to manage.

At one time I thought of writing a book to be titled You Don't Have to Beat the Market. I never did because I'm not an economist nor a super-successful investor, ergo, my book would never sell.

Actor

Try reading, "Market Wizards", Jack Schwager, or "Alchemy of Finance" by the famous, George Soros

Thanks for the recommendations. I'll check into them.