1973 - A Random Walk

A Devastating Conclusion
A Devastating Conclusion
Burton Malkiel

Economist, author and Princeton Professor of Economics Burton Malkiel is a leading proponent of Fama’s Efficient Market Hypothesis. In his 1973 book, A Random Walk Down Wall Street (now in its 11th edition),1 Malkiel challenged the financial services industry to provide the investing public a better way to invest. “Fund spokesmen are quick to point out you can’t buy the market averages,” he wrote. “It’s time the public could.” He also famously quipped, “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 the experts.” Two years after his book was published, the Vanguard Group was formed to create the first index fund available to individual investors. Vanguard founder John C. Bogle refers to Malkiel as the “spiritual leader of the [indexing] crusade.”2

    -1 Burton Malkiel, A Random Walk Down Wall Street (New York: W. W. Norton & Company, Inc., 1973).
    -2 John C. Bogle, Founder and Senior Chairman, The Vanguard Group, Keynote Speech, The Fourth Annual Superbowl of Indexing, Dec. 5, 1999.
Step 2Burton MalkielA Random Walk Down Wall StreetEfficient Market HypothesismA Devastating Conclusion