A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition)

It is not hard to make money in the market. What is hard to avoid is the alluring temptation to throw your money away on short, get-rich-quick speculative binges.

Second, money is a unit of account, the yardstick that is needed to post prices and record debts now and in the future.

useful rule, called “the rule of 72,” provides a shortcut way to determine how long it takes for money to double. Take the interest rate you earn and divide it into the number 72, and you get the number of years it will take to double your money.

It is intrinsically impossible to calculate the intrinsic value of a share.

Mathematicians call a sequence of numbers produced by a random process (such as those on our simulated stock chart) a random walk.

the definition of the time period for the investment return and the predictability of the returns that often distinguish an investment from a speculation.

GREED RUN AMOK has been an essential feature of every spectacular boom in history.

Technical analysis is the method of predicting the appropriate time to buy or sell a stock used by those believing in the castle-in-the-air view of stock pricing. Fundamental analysis is the technique of applying the tenets of the firm-foundation theory to the selection of individual stocks.

Rule 1: Buy only companies that are expected to have above-average earnings growth for five or more years.