A random walk down Wall Street

[reaz]

Who's read the book and what do they have to say about Malkiel's claim?

It just beats me that he can refute what successful investors like Buffett, Fisher and Graham have taught and used to make their invesments.

[mp3]

Who's read the book and what do they have to say about Malkiel's claim?

It just beats me that he can refute what successful investors like Buffett, Fisher and Graham have taught and used to make their invesments.


Buffet him self is a longterm investor and thats what random walk theory is about. You cant predict movements shortterm. A lot has changed since he wrote the book. What may have been quite plausible in the 70's does not necessarily prove to be true today.

[reaz]

Buffet him self is a longterm investor and thats what random walk theory is about. You cant predict movements shortterm. A lot has changed since he wrote the book. What may have been quite plausible in the 70's does not necessarily prove to be true today.

Have you read the book? I am talking about the 8th edition of the book written after the dot com crash.

It debunks fundamental analysis as well as technical analysis. That means it debunks value investing as taught by Graham or as implemented by Buffett, regardless of the time frame.

[mp3]

Have you read the book? I am talking about the 8th edition of the book written after the dot com crash.

It debunks fundamental analysis as well as technical analysis. That means it debunks value investing as taught by Graham or as implemented by Buffett, regardless of the time frame.


I have read an edition before the dotcom one.

[reaz]

I have read an edition before the dotcom one.


according to him what he said still holds true.

but the value investors aren't retracting either. so there is this debate on efficient market, etc. What's your take on it?

[mp3]

according to him what he said still holds true.

but the value investors aren't retracting either. so there is this debate on efficient market, etc. What's your take on it?

I dont think the markets are efficient as if they were it would be difficult to make any money. Arbitrage trading exactly reflects this as well as relative value trading. Nothing is 100% efficient. As for the random walk, no prices are not random, but i wouldnt swear by technical and fundamentals either. There are various factors which effect the price in the small, medium and long term. Depends what you are trading and the view you are taking on the market. Its not random a lot of movements are pshychological, i think. As various people will react depending on different news and patters seen in the graphs. There is also a lot of program trading to, so this can move the price. All these are not random but occur for a reason but I think what he refers to is that after all these small movements the markets will go where they want and you cant dictate it. A single person or company cant but it is not random as the moements are based on some information may it be trends, fundamentals or other reasoning which make the investors react and in turn shift the market.