Burton G. Malkiel Quote
You can reduce risk by building up your investments slowly with regular, periodic investments over time. Investing regular amounts monthly or quarterly will ensure that you put some of your money to work during favorable periods, when prices are relatively low. Investment advisers call this technique dollar-cost averaging. With equal dollar investments over time, the investor buys fewer shares when prices are high and more shares when prices are low. It won’t eliminate risk but it will ensure that you don’t buy your entire portfolio at temporarily inflated prices. The
Burton G. Malkiel
You can reduce risk by building up your investments slowly with regular, periodic investments over time. Investing regular amounts monthly or quarterly will ensure that you put some of your money to work during favorable periods, when prices are relatively low. Investment advisers call this technique dollar-cost averaging. With equal dollar investments over time, the investor buys fewer shares when prices are high and more shares when prices are low. It won’t eliminate risk but it will ensure that you don’t buy your entire portfolio at temporarily inflated prices. The
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About Burton G. Malkiel
Burton Gordon Malkiel (born August 28, 1932) is an American economist, financial executive, and writer most noted for his classic finance book A Random Walk Down Wall Street (first published 1973, in its 13th edition as of 2023).
Malkiel is the Chemical Bank chairman's professor of economics at Princeton University, and is a two-time chairman of the economics department there. He was a member of the Council of Economic Advisers (1975–1977), president of the American Finance Association (1978), and dean of the Yale School of Management (1981–1988). He also spent 28 years as a director of the Vanguard Group. He is Chief Investment Officer of software-based financial advisor, Wealthfront Inc. and as a member of the Investment Advisory Board for Rebalance. Malkiel was elected to the American Philosophical Society in 2001.
He is a leading proponent of the efficient-market hypothesis, which contends that prices of publicly traded assets reflect all publicly available information, although he has also pointed out that some markets are evidently inefficient, exhibiting signs of non-random walk. Malkiel in general supports buying and holding index funds as the most effective portfolio-management strategy, but does think it is viable to actively manage "around the edges" of such a portfolio, as financial markets are not totally efficient. In a 2020 interview, Malkiel also stated he was not opposed in principle to investing or trading in single stocks (as exemplified by the popularity of Robinhood), provided the large majority of one's portfolio is index funds.
Malkiel is the Chemical Bank chairman's professor of economics at Princeton University, and is a two-time chairman of the economics department there. He was a member of the Council of Economic Advisers (1975–1977), president of the American Finance Association (1978), and dean of the Yale School of Management (1981–1988). He also spent 28 years as a director of the Vanguard Group. He is Chief Investment Officer of software-based financial advisor, Wealthfront Inc. and as a member of the Investment Advisory Board for Rebalance. Malkiel was elected to the American Philosophical Society in 2001.
He is a leading proponent of the efficient-market hypothesis, which contends that prices of publicly traded assets reflect all publicly available information, although he has also pointed out that some markets are evidently inefficient, exhibiting signs of non-random walk. Malkiel in general supports buying and holding index funds as the most effective portfolio-management strategy, but does think it is viable to actively manage "around the edges" of such a portfolio, as financial markets are not totally efficient. In a 2020 interview, Malkiel also stated he was not opposed in principle to investing or trading in single stocks (as exemplified by the popularity of Robinhood), provided the large majority of one's portfolio is index funds.