Is the Walk Down Wall Street Still Random?

The author of an investing classic says yes and remains a champion of index investing.

- KIM CLARK

Princeton University emeritus economist Burton Malkiel, who turns 91 this year, has just published a 50th anniversary edition of his investing classic, A Random Walk Down Wall Street (Norton, $32.50).

Kiplinger: So much has changed since your first edition-there weren't even any index funds for individual investors then. What are the best developments for investors you've seen in the past 50 years? Malkiel:

Index funds. And Roth IRAs. People ought to use Roths because you can save for retirement in a tax-friendly way-without paying tax on any of the gains. Money market funds are a real boon for investors because bank accounts are earning essentially zero even when short-term interest rates are high. Zero-commission trading is another big deal. Exchange-traded funds allow the individual investor to access funds with zero commissions. These are, without any question, advantages for the individual investor.

What are the worst changes?

Some trading platforms have marketed themselves as investors' best friends. They are lovely sites that made it easy and like a game to gamble by buying and selling stock. As you know, I am a buy-and-hold investor. Some of the other things that have led many people to disaster are cryptocurrency, non-fungible tokens and the Reddit mobs.

You wrote another book in 2008 on investing in China. Have your views on international investing changed?