Burton Malkiel Quotes



Best 27 A Random Walk Down Wall Street Quotes by Burton Malkiel

A Random Walk Down Wall Street Quotes

“A blindfolded monkey throwing darts at a newspaper's financial pages could select a portfolio that would do just as well as one carefully selected by experts.”

A Random Walk Down Wall Street

“A couple, both age seventy-eight, went to a sex therapist’s office. The doctor asked, “What can I do for you?” The man said, “Will you watch us have sexual intercourse?” The doctor looked puzzled, but agreed. When the couple finished, the doctor said, “There’s nothing wrong with the way you have intercourse,” and charged them $50. The couple asked for another appointment and returned once a week for several weeks. They would have intercourse, pay the doctor, then leave. Finally, the doctor asked, “Just exactly what are you trying to find out?” The old man said, “We’re not trying to find out anything. She’s married and we can’t go to her house. I’m married and we can’t go to my house. The Holiday Inn charges $93 and the Hilton Inn charges $108. We do it here for $50, and I get $43 back from Medicare.”

A Random Walk Down Wall Street

“A stock selling at $100 per share with earnings of $10 per share would have the same P/E multiple (10) as a stock selling at $40 with earnings of $4 per share. It is the P/E multiple, not the price, that really tells you how a stock is valued in the market.”

A Random Walk Down Wall Street

“Daniel Kahneman has argued that this tendency to overconfidence is particularly strong among investors. More than most other groups, investors tend to exaggerate their own skill and deny the role of chance. They overestimate their own knowledge, underestimate the risks involved, and exaggerate their ability to control events.”

A Random Walk Down Wall Street

“For many of us, trying to outguess the market is a game that is much too much fun to give up. Even if you were convinced you would not do any better than average, I'm sure that most of you with speculative temperaments would still want to keep on playing the game of selecting individual stocks with at least some portion of the money you invest.”

A Random Walk Down Wall Street

“Forecasts are difficult to make—particularly those about the future.”

A Random Walk Down Wall Street

“I view investing as a method of purchasing assets to gain profit in the form of reasonably predictable income (dividends, interest, or rentals) and /or appreciation over the long term.”

A Random Walk Down Wall Street

“If you bought $1,000 worth of Nortel stock one year ago, it would now be worth $49. If you bought $1,000 worth of Budweiser (the beer, not the stock) one year ago, drank all the beer, and traded in the cans for the nickel deposit, you would have $79. My advice to you… start drinking heavily.”

A Random Walk Down Wall Street

“In crowds it is stupidity and not mother-wit that is accumulated, Gustave Le Bon noted in his 1895 classic on crowd psychology.”

A Random Walk Down Wall Street

“It is not hard to make money in the market. What is hard to avoid is the alluring temptation to throw your money away on short, get-rich-quick speculative binges. It is an obvious lesson, but one frequently ignored.”

A Random Walk Down Wall Street

“It is the definition of the time period for the investment return and the predictability of the returns that often distinguish an investment from a speculation. A speculator buys stocks hoping for a short-term gain over the next days or weeks. An investor buys stocks likely to produce a dependable future stream of cash returns and capital gains when measured over years or decades.”

A Random Walk Down Wall Street

“Kahneman and Tversky concluded that losses were 2½ times as undesirable as equivalent gains were desirable. In other words, a dollar loss is 2½ times as painful as a dollar gain is pleasurable. People exhibit extreme loss aversion, even though a change of $100 of wealth would hardly be noticed for most people with substantial assets. We’ll see later how loss aversion leads many investors to make costly mistakes.”

A Random Walk Down Wall Street

“Look for growth situations with low price-earnings multiples. If the growth takes place, there’s often a double bonus—both the earnings and the multiple rise, producing large gains. Beware of very high multiple stocks in which future growth is already discounted. If growth doesn’t materialize, losses are doubly heavy—both the earnings and the multiples drop.”

A Random Walk Down Wall Street

“Never buy anything from someone who is out of breath.”

A Random Walk Down Wall Street

“Put time on your side. Start saving early and save regularly. Live modestly and don't touch the money that's been set aside.”

A Random Walk Down Wall Street

“Res tantum valet quantum vendi potest. (A thing is worth only what someone else will pay for it.)”

A Random Walk Down Wall Street

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“Carrying debt is as appealing as being covered with leeches and has much the same effect.

Take out your sharpest knife and start scraping the little bloodsuckers off.”


More quotes by J. L. Collins

“Stupidity well packaged can sound like wisdom.”

A Random Walk Down Wall Street

“The greatest of all gifts is the power to estimate things at their true worth.”

A Random Walk Down Wall Street

“The harsh truth is that the most important driver in the growth of your assets is how much you save, and saving requires discipline. Without a regular savings program, it doesn’t matter if you make 5 percent, 10 percent, or even 15 percent on your investment funds. The single most important thing you can do to achieve financial security is to begin a regular savings program and to start it as early as possible. The only reliable route to a comfortable retirement is to build up a nest egg slowly and steadily. Yet few people follow this basic rule, and the savings of the typical American family are woefully inadequate. It is critically important to start saving now. Every year you put off investing makes your ultimate retirement goals more difficult to achieve. Trust in time rather than in timing. As a sign in the window of a bank put it, little by little you can safely stock up a strong reserve here, but not until you start.”

A Random Walk Down Wall Street

“The index performance is not mediocre—it exceeds the results achieved by the typical active manager.”

A Random Walk Down Wall Street

“The public realized that an excess of paper currency creates no real wealth, only inflation.”

A Random Walk Down Wall Street

“There are four factors that create irrational market behavior: overconfidence, biased judgments, herd mentality, and loss aversion.”

A Random Walk Down Wall Street

“There is nothing so disturbing to one’s well-being and judgment as to see a friend get rich.”

A Random Walk Down Wall Street

“Trust in time rather than timing.”

A Random Walk Down Wall Street

“Two behavioral economists, Terrance Odean and Brad Barber, examined the individual accounts at a large discount broker over a substantial period of time. They found that the more individual investors traded, the worse they did. And male investors traded much more than women, with correspondingly poorer results.”

A Random Walk Down Wall Street

“Two-thirds of professionally managed funds are regularly outperformed by a broad capitalization-weighted index fund with equivalent risk, and those that do appear to produce excess returns in one period are not likely to do so in the next. The record of professionals does not suggest that sufficient predictability exists in the stock market to produce exploitable arbitrage opportunities.”

A Random Walk Down Wall Street

“You will never be allowed to buy the really good IPOs at the initial offering price. The hot IPOs are snapped up by the big institutional investors or the very best wealthy clients of the underwriting firm.”

A Random Walk Down Wall Street

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“I wanted to go into TV and write comedy. I wrote to ABC, NBC and CBS. ABC was interested and said they would get back to me.To get ABC’s attention, I sent a carrier pigeon to inquire about my prospects. They sent back a message on the bird. It said, ‘nothing yet.’”


More quotes by Ralph Charell