Comments on: Review: The Random Walk Guide to Investing http://www.thesimpledollar.com/2007/05/25/review-the-random-walk-guide-to-investing/ Simple, applicable personal finance advice for the modern world Fri, 10 Feb 2012 07:17:51 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Duane Gran http://www.thesimpledollar.com/2007/05/25/review-the-random-walk-guide-to-investing/comment-page-1/#comment-29721 Duane Gran Mon, 28 May 2007 13:52:04 +0000 http://www.thesimpledollar.com/2007/05/25/review-the-random-walk-guide-to-investing/#comment-29721 As for firing the investment adviser, this is a popular refrain in the DIY venues such as books, magazines and web sites. A more mature outlook in my view is to be informed enough to have an intelligent discussion with an advisor. Consider for a moment the personal network of these advisors. The business relationship often goes beyond simply managing your money -- which most people can do adequately if they acquire discipline and technique -- but that scratches the surface of what is for many people a fruitful opportunity to link into a high net worth crowd. The value proposition of an advisory relationship isn't that you will beat the market, but rather that you work with someone whose emotions aren't getting in the way of the plan and who suggests that Joe Somebody might be a good business associate. As for firing the investment adviser, this is a popular refrain in the DIY venues such as books, magazines and web sites. A more mature outlook in my view is to be informed enough to have an intelligent discussion with an advisor.

Consider for a moment the personal network of these advisors. The business relationship often goes beyond simply managing your money — which most people can do adequately if they acquire discipline and technique — but that scratches the surface of what is for many people a fruitful opportunity to link into a high net worth crowd. The value proposition of an advisory relationship isn’t that you will beat the market, but rather that you work with someone whose emotions aren’t getting in the way of the plan and who suggests that Joe Somebody might be a good business associate.

]]> By: Ted Valentine http://www.thesimpledollar.com/2007/05/25/review-the-random-walk-guide-to-investing/comment-page-1/#comment-28844 Ted Valentine Fri, 25 May 2007 16:37:49 +0000 http://www.thesimpledollar.com/2007/05/25/review-the-random-walk-guide-to-investing/#comment-28844 I've been investing over 10 years and I read this book last month and though it was well worth the read. I checked it out from the library. It is easy to read. Easy to understand. Comprehensive. It can be read in a few hours. Things are simplified and all the fluff is cut out. If you are looking for a simple, well explained, and historically supported investing strategy then this book delivers the goods. You can never go wrong with basics. I agree that if you're looking for more detail and nitty gritty and complexity then this isn't going to satisfy. For those that have never heard of the efficient market theory (and you should know what this theory is), you should absolutely read this book. Malkiel is one of the fathers of the efficient market theory. The main criticism I have with the book is Malkiel is on the board of directors at Vanguard* and this obviously gives him an angle. I felt like there were almost no counter points or pitfalls discussed with his investing philosophy. *To his credit he lists other recommended fund companies in addition to Vanguard with websites and phone numbers in his investment recommendations. I’ve been investing over 10 years and I read this book last month and though it was well worth the read. I checked it out from the library. It is easy to read. Easy to understand. Comprehensive. It can be read in a few hours. Things are simplified and all the fluff is cut out. If you are looking for a simple, well explained, and historically supported investing strategy then this book delivers the goods. You can never go wrong with basics.

I agree that if you’re looking for more detail and nitty gritty and complexity then this isn’t going to satisfy. For those that have never heard of the efficient market theory (and you should know what this theory is), you should absolutely read this book. Malkiel is one of the fathers of the efficient market theory.

The main criticism I have with the book is Malkiel is on the board of directors at Vanguard* and this obviously gives him an angle. I felt like there were almost no counter points or pitfalls discussed with his investing philosophy.

*To his credit he lists other recommended fund companies in addition to Vanguard with websites and phone numbers in his investment recommendations.

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