A Random Walk Down Wall Street
Buy (No Affiliate Link) →Malkiel's argument that markets are efficient and most active management is futile remains one of the most important (and controversial) books in finance. Covers bubbles, technical analysis skepticism, fundamental analysis limitations, and makes the case for index investing. Strongest in its historical analysis of market manias and its takedown of Wall Street sales practices. Active traders will disagree with the core thesis, but understanding the efficient market argument makes you a better trader — you need to know what you're arguing against. Updated regularly; always buy the latest edition.
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For the strongest counterargument to Malkiel's efficient market thesis, see Graham's The Intelligent Investor. Lynch's One Up on Wall Street makes the case for individual stock-picking. Browse our Investing & Value category.