Harry Markowitz quotes

Harry Markowitz, an American economist and Nobel laureate, is known for his pioneering work in modern portfolio theory. Born in 1927, Markowitz's research revolutionized the way investors think about risk and return in their investment portfolios. His work laid the foundation for diversification strategies and the concept of efficient frontier. Markowitz was awarded the Nobel Prize in Economics in 1990 for his contributions to the field. Today, his work continues to influence investment practices and asset allocation strategies. Learn more about Harry Markowitz and his impact on modern finance.

We next consider the rule that the investor does or should consider expected return a desirable thing and variance of return an undesirable thing.

- 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

The chief problem with the individual investor: He or she typically buys when the market is high and thinks it’s going to go up, and sells when the market is low and thinks it’s going to go down.

- Harry Markowitz

It's like a crapshoot in Las Vegas, except in Las Vegas the odds are with the house. As for the market, the odds are with you, because on average over the long run, the market has paid off.

- Harry Markowitz

In choosing a portfolio, investors should seek broad diversification, Further, they should understand that equities--and corporate bonds also--involve risk; that markets inevitably fluctuate; and their portfolio should be such that they are willing to ride out the bad as well as the good times.

- Harry Markowitz

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

- Harry Markowitz