Asset Allocation Model – A Random Walk Down Wall Street

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing was first written in 1973 by Burton Malkiel. This book is considered as an investing classic, pioneering the controversial idea that stock prices are random and thus diversification is crucial for success. Here is an sample allocation based on a 75% stock/25% bond asset allocation model.

Total US Stock Market 43%43
Total International Stock Market 22%22
Real Estate REIT 10%10
Bonds 20%20
Cash 5%5
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