BURTON MALKIEL
Author of A Random Walk Down Wall Street, pioneer of index investing, Princeton professor for 28 years
Burton Malkiel is the academic who helped kill the fund manager mystique. His 1973 book argued that a blindfolded chimp throwing darts could match most professional stock pickers — and the data proved him right. He spent 28 years at Princeton, then went hands-on as chief investment officer at Wealthfront. His influence is why your 401(k) probably holds index funds today. If you pay 1% to an active manager, Malkiel would say you are donating to their lifestyle.
Net Worth
$20 million
Nationality
American
Time Horizon
Long-Term
Risk Appetite
4 / 10
CAREER & BACKGROUND
Published A Random Walk Down Wall Street in 1973, now in its 13th edition. Served as Dean of the Yale School of Management from 1975 to 1981.
Taught economics at Princeton for 28 years and held the Chemical Bank Chair in Economics. Sat on Vanguard's board for 28 years and helped shape the firm's index-first philosophy.
Served as chief investment officer at Wealthfront from 2012 to 2022. Served on President Ford's Council of Economic Advisers from 1975 to 1977.
COMPANIES & ROLES
Vanguard (board member), Wealthfront (CIO), Princeton University (professor emeritus)
INVESTING STYLE & PHILOSOPHY
Pure passive. Malkiel believes markets price in all available information almost instantly.
His answer to beating the market is simply not to try. Buy the whole market, keep costs low, and stay put for decades.
THE PLAYBOOK
Risk Approach
Measured. He advocates broad diversification and long time horizons.
He is not opposed to risk — he just wants investors to be paid for the risks they take, not punished by high fees.
Money Habits
Practices what he preaches. He holds index funds, favors low-cost Vanguard products, and avoids trading.
At Wealthfront he championed algorithmic tax-loss harvesting as a way to improve after-tax returns without market-timing.
BIGGEST WIN
Convincing an entire generation that index funds beat stock-pickers. Over 30-year periods, Vanguard's S&P 500 index fund has outperformed roughly 90% of active large-cap funds after fees.
Malkiel was saying this in 1973.
BIGGEST MISTAKE
Defended strict efficient market theory for too long before acknowledging anomalies like the small-cap value premium and momentum. Later editions of his book softened his stance, but critics say he was slow to update.
FINANCIAL PHILOSOPHY
Markets are mostly efficient. Most active managers underperform after fees over the long run.
The best strategy for most investors is low-cost index funds held for decades. He also believes in international diversification, not just US stocks.
FAMILY & PERSONAL LIFE
Married to Patricia Malkiel. Has children.
Keeps his family life private.
EDUCATION
Harvard University, BA Economics (1953). Harvard Business School, MBA (1955).
Princeton University, PhD Economics (1964).
BOOKS & RESOURCES
"The Elements of Investing by Burton Malkiel and Charles Ellis", "Global Bargain Hunting by Burton Malkiel and J.P. Mei"]
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QUOTES (5)
A blindfolded monkey throwing darts at a newspaper's financial pages could select a portfolio that would do just as well as one carefully selected by experts.
The stock market is not a casino, but if you move in and out of stocks every time they move a point or two, the market will be a casino.
The only investors who should not diversify are those who are right 100% of the time.
The evidence is overwhelming that active managers as a group cannot beat the market after fees.
Most investors would be better off in an index fund. Rarely does one find a manager who is consistently superior.
NETFIGO SCORE
Proprietary 5-dimension investor rating
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Contrarian Index
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Related Profiles
Investors
Jack Bogle
Both championed low-cost index investing and had a long professional relationship through Vanguard's board. Malkiel served on Vanguard's board for 28 years alongside Bogle's tenure as founder.
Peter Lynch
Opposite philosophies that define the active vs passive debate. Malkiel argued most managers cannot beat the market; Lynch's 29% annual return at Fidelity Magellan is the strongest counter-argument.
Head-to-Head
Compare Burton Malkiel vs another investor.