A Random Walk down Wall Street

Princeton economist Burton G. Malkiel makes the case that stock prices move in a largely random way, so most investors cannot reliably beat the market averages. The book, which brought the random walk hypothesis to a wide audience and is often cited in support of the efficient-market hypothesis, tests technical and fundamental analysis against academic research and finds both lacking. Malkiel also questions choosing actively managed funds on past results, and favors a low-cost, diversified index held over time. Later editions add material on exchange-traded funds, smart beta, factor investing and tax-loss harvesting, and a life-cycle guide matches strategy to the investor's age. Total sales have passed 1.5 million copies.

Ramit Sethi included it among 50 books he recommends, calling its ideas fascinating though he does not necessarily agree with all of it. Former stockbroker Michael Hebenstreit suggests it to anyone starting out in trading or investing.