Was Solomon Robbed of A Nobel Prize?
CoolHappyGuy on August 17th, 2008
In 1990, Harry Markowitz won the Nobel Prize in Economics. Dr. Markowitz was one of the founding architects of Modern Portfolio Theory (MPT). One of the key underlying tenets of MPT is the use of diversification to optimize investment portfolios.
Hold on a minute. Didn’t King Solomon say pretty much the same thing in the above verse? Essentially, aren’t Harry and Solomon telling us not to put all of your financial eggs in one basket? I like Solomon’s statement better. It is short, sweet, to the point, and no business school math is needed. In 1990, Harry Markowitz won the Nobel Prize in Economics. Dr. Markowitz was one of the founding architects of Modern Portfolio Theory (MPT). One of the key underlying tenets of MPT is the use of diversification to optimize investment portfolios.
Hold on a minute. Didn’t King Solomon say pretty much the same thing in the above verse? Essentially, aren’t Harry and Solomon telling us not to put all of your financial eggs in one basket? I like Solomon’s statement better. It is short, sweet, to the point, and no business school math is needed.