Harry Markowitz quotes

Harry Markowitz was an American economist renowned for his pioneering work in modern portfolio theory. His research fundamentally transformed approaches to investment and risk management. He received the Nobel Prize in Economics for his contributions to financial economics. Here are 10 of his quotes:

If I had to vote for what is the greatest piece of music ever conceived by the human mind, I'd have a hard time choosing between the Chaconne that ends Bach's second partita for unaccompanied violin or the his Chromatic Fantasy and Fugue for the piano.

Harry Markowitz

I was a colleague of Armen's, at the Rand Corporation "think tank," during the 1950s, and hold no economist in higher regard. When I sat down at my keyboard just now it was to find out what happened to Armen's works. One Google response was someone saying that Armen should get a Nobel Prize. I concur. My own Nobel Prize in Economics was awarded in 1990 along with the prize for Wm. Sharpe. I see in Wikipedia that Armen "influenced" Bill, and that Armen is still alive and is 96 years old.

Harry Markowitz

To reduce risk it is necessary to avoid a portfolio whose securities are all highly correlated with each other. One hundred securities whose returns rise and fall in near unison afford little protection than the uncertain return of a single security.

Harry Markowitz

She talks about how Brahms baby sat them while her mother, Clara, was out earning a living, concertizing all over Europe. Brahms continued in their lives until his death. She also talks about her loving relationship with her mother; her usual sibling like relationships with the other Schumann children; and how she would get mad at Brahms when he would make her mother sad, even cry, but none of them could be mad at Brahms for very long.

Harry Markowitz

Portfolio theory, as used by most financial planners, recommends that you diversify with a balance of stocks and bonds and cash that's suitable to your risk tolerance.

Harry Markowitz

Diversifying sufficiently among uncorrelated risks can reduce portfolio risk toward zero. But financial engineers should know that's not true of a portfolio of correlated risks.

Harry Markowitz

I would never be 100 percent in stocks or 100 percent in bonds or cash.

Harry Markowitz

Becoming an economist was not a childhood dream of mine.

Harry Markowitz

A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies.

Harry Markowitz