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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.
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Sapere aude
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