A RANDOM WALK
DOWN WALL STREET
The Time-Tested Strategy for
Successful Investing
BURTON G. MALKIEL
W. W. NORTON & COMPANY
New YorkLondon
FOR NANCY AND PIPER
CONTENTS
Preface
Part One
STOCKS AND THEIR VALUE
1. FIRM FOUNDATIONS AND CASTLES IN THE AIR
What Is a Random Walk
Investing as a Way of Life Today
Investing in Theory
The Firm-Foundation Theory
The Castle-in-the-Air Theory
How the Random Walk Is to Be Conducted
2. THE MADNESS OF CROWDS
The Tulip-Bulb Craze
The South Sea Bubble
Wall Street Lays an Egg
An Afterword
3. SPECULATIVE BUBBLES FROM THE SIXTIES INTO THE
NINETIES
The Sanity of Institutions
The Soaring Sixties
The New “New Era”: The Growth-Stock/New-Issue Craze
Synergy Generates Energy: The Conglomerate Boom
Performance Comes to the Market: The Bubble in Concept Stocks
The Nifty Fifty
The Roaring Eighties
The Return of New Issues
Concepts Conquer Again: The Biotechnology Bubble
ZZZZ Best Bubble of All
What Does It All Mean
The Japanese Yen for Land and Stocks
4. THE EXPLOSIVE BUBBLES OF THE EARLY 2000s
The Internet Bubble。