http://www.steelypips.org/weblog/2009... ( )

It's a bit USA-centric, but if you read one book about investing in stocks or mutual funds it should be this one. I've read the 7th edition from 1999. ( )

This book courageously opposes all the categories of voodoo that tempt the born-a-minute fools swarming the worldwide securities markets. Yes, you may make ninety percent timing the market today, but you will lose just as much the next day and the next. And then you have to pay your broker. And the tax man.

Better to buy index funds and hold them until you retire. If that's too boring for you, take five percent of your money and speculate with that. But don't fool yourself into thinking that you can beat the market. Avalanches of data show that market timing is not a matter of skill, but luck. And any gains will be shaved to uselessness by the Uncle Sam and your broker.

Even the seemingly scientific techniques of technical analysis are destroyed in the blast of Malkiel's empirical artillery. Markets are random. Trends reverse without warning. Your head and shoulders pattern is not going to make you money. Sorry.

Yes, Malkiel's thesis is "buy and hold." But he's not trying to depress you with his thesis; he's trying to help you make as much money as possible with your investments. If you need to gamble, Malkiel gives advice for gambling in the sanest possible way.

This book is a frank, level-headed approach to squeezing the best returns from your invested dollars. And, after more than 30 years in print, there is no point in trying to argue against Random Walk. If you really feel the need to get disgustingly rich on Wall Street, open a brokerage already. ( )

Classic! I first read this in college in 1986. It was good then, but I was too naive to fully appreciate it. I read it again in 2005 and realized this is a tremendous book. If you're looking for a book to show you where to make a quick buck, this is not the book for you. The author explains the wisdom of keeping your eye on the fundamentals of investing. If you tend to fall for "can't miss" investments, buy this book. It might cure you. ( )