Harry Markowitz’s profile picture

Harry Markowitz

Economist
Harry Markowitz’s profile picture
Net worth 2018: $737 Million
Residence: Chicago, Illinois, USA
Country: United States
BirthDay: 24 August 1927
Sigh: Virgo
BIOGRAPHY

Harry Markowitz was bornon 24 August 1927 in Chicago, Illinois, USA, American, is Economist. Harry Max Markowitz is an American economist who won the Nobel Prize in Economic Sciences for his contribution to the field of financial economics. He shared the prize money with two other American economists, Merton H. Miller and William F. Sharpe. His research opened up a completely new field of study related to financial economics where the effect of risks, diversification and correlation were very important. Markowitz had already developed a portfolio theory in the early 1950s on the ways in which returns on investments could be optimized. Economists at that time stressed on diversification of portfolios and were against putting all their money in one place. Markowitz came up with ways to measure the risk involved for each security and how to make a combined portfolio that could bring maximum returns for the risk taken. He showed how two shares, both having equally high risks and high returns, can be combined in a portfolio to lower the overall risk. This could be possible if the price of one share had a tendency to fall when the other rose thus minimizing the total risk while keeping the level of returns quite high. Makowitz’s idea caught on very fast and all portfolio managers and investors started to use this technique to keep the money flowing into their bank accounts.

NET WORTH STATISTIC
2018

$737 Million

TIMELINE
2002

In 2002 he was elected a fellow of the ‘Institute for Operations Research and Management Studies’

1982

From 1982 onwards he taught at the ‘Baruch College’ under the ‘City University of New York’ as a professor of economics

1971

He left the company in 1971 after it was bought by Stuart & Co

1968

He joined the ‘Arbitrage Management Company’ in 1968 and created a hedge fund with the help of Robert Merton and Paul Samuelson which is supposed to be the first ever attempt to conduct arbitrage trading with the help of computers

1962

He founded the ‘California Analysis Center’ on July 17, 1962 with the help of Herb Karr which later became the ‘CACI International’

1960

He returned to the RAND Corporation in 1960 and helped develop a programming language called ‘SIMSCRIPT’ which was the first ‘simulation programming language’ of its kind

1959

His next book was titled ‘Portfolio Selection: Efficient Diversification of Investments’ which came out in 1959

1956

During this time he worked on his algorithm which was published it in 1956 and on his book on the allocation of portfolio which came out in 1959

1955

He spent a year from 1955 to 1956 at the ‘Cowles Foundation’, Yale University

1952

Harry Markowitz published his first book ‘Portfolio Selection’ in 1952

1927

Harry Markowitz was born in Chicago, Illinois, USA on August 24, 1927 to Morris Markowitz and Mildred Markowitz

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