- Won the Nobel Prize for exploring the mathematical tradeoff between risk and return
- This is how he described his portfolio allocation in the 1950s, when his investment models were first developed:
I visualized my grief if the stock market went way up and I wasn’t in it—or if it went way down and I was completely in it. My intention was to minimize my future regret. So I split my contributions 50/50 between bonds and equities.
Commentary
- He, too, had to be reasonable when making investment decisions. He could not be coldly rational and sleep well at night