Radio Show

image description

Money Basics Radio Show

Steven Albrecht and Cynthia Wentworth take on a new, interesting, and timely financial issue every week, and help make sense of potentially misunderstood investment jargon.

Listen to Previous Episodes

Global Market Update

image description
  • 25 July 2014

    What is investing like?

    Many people believe that modern finance began in 1952 when Harry Markowitz published his paper, “Portfolio Selection,” for which he was later awarded the Nobel Prize. His work lays out the mathematical basis for diversification. By combining uncorrelated securities, investors can reduce the riskiness of their portfolios without lowering returns.

    But Markowitz had a problem. When he sat before his dissertation committee to defend his thesis, they didn’t know how to classify his work. “It’s not economics,” they objected. “It’s not mathematics. It’s not business. It’s not literature.” Eventually, the committee agreed that Markowitz had earned his doctorate. And the world is a richer place.

    But what is portfolio management? It uses all these disciplines, but isn’t really part of them. In my assessment, it’s most like engineering. Portfolio managers need to find the most best way to reach a goal, given a set of constraints, working in a world of uncertain, partial information. more



image description

We are doing something that no one else has done before. Our professional investment team will open up the doors and allow you to peer over our shoulder and watch what we do every day. Subscribe now and experience the future of do-it-yourself investing. See our stock selections, model portfolios, economic research, technical analysis, and more…

image description

Recent Tweets