Harry Markowitz

Date of Birth: August 24, 1927

Zodiac Sign: Virgo

Biography

Harry Max Markowitz is an American economist renowned for his pioneering work in the field of modern portfolio theory. He was born on August 24, 1927, in Chicago, Illinois. Markowitz graduated with a bachelor’s degree in economics from the University of Chicago in 1947 and later received his Ph.D. from the same institution in 1954. His groundbreaking doctoral dissertation laid the foundation for Modern Portfolio Theory (MPT), which earned him the Nobel Prize in Economic Sciences in 1990. Markowitz’s research revolutionized investment and finance by introducing the concept of diversification and risk-return optimization. His work demonstrated how investors could construct portfolios to maximize expected return based on a given level of market risk, emphasizing the importance of considering both the variance and covariance of asset returns. Throughout his career, Markowitz held various academic and professional positions, including roles at the RAND Corporation, IBM, and multiple universities. He has also authored several influential books and articles that continue to shape financial and economic thought.

5 Interesting Facts about Harry Markowitz

1. Harry Markowitz is considered the father of Modern Portfolio Theory (MPT).

2. He won the Nobel Prize in Economic Sciences in 1990, sharing it with Merton Miller and William Sharpe.

3. Markowitz’s dissertation was initially met with skepticism, but it eventually became one of the most cited works in financial economics.

4. He has held teaching positions at prestigious institutions like the University of California, San Diego.

5. Markowitz has also contributed to the development of the SIMSCRIPT programming language, used for simulation.

5 Most Interesting Quotes from Harry Markowitz

1. “Diversification is the only free lunch in finance.”

2. “The essence of investment management is the management of risks, not the management of returns.”

3. “You shouldn’t be making your decision based on the outcome of the last game.”

4. “Risk for most people is the chance of losing money. For me, it’s the chance of having less than what you expected.”

5. “The beauty of diversification is it’s about as close as you can get to a free lunch in investing.”

Highest Net Worth Achieved

Harry Markowitz’s highest net worth is estimated to be around $20 million, largely attributed to his academic achievements and contributions to economics.