How expert are expert stock pickers?
Religion & Liberty Online

How expert are expert stock pickers?

Note: This is post #93 in a weekly video series on basic economics.

In his 1973 book, A Random Walk Down Wall Street, economist Burton Malkiel made a controversial claim: a blindfolded monkey, throwing darts at the financial pages, could select a basket of stocks that would do just as well as a set chosen by the pros.

Economist Alex Tabarrok explains why that is true and why the first rule of smart investing is “ignore the expert stock pickers.”

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).