Markowitz

Markowitz’s insight was simple but profound: Rather than focusing on individual stocks, investors should construct portfolios that balance risk and return through diversification.

The turning point came in 1952, when Harry Markowitz published his groundbreaking work on portfolio selection.

When a “frothy market” feels chaotic and risky and makes you anxious, Markowitz told us what to do: diversify.

The economist Henry Markowitz famously called diversification the only "free lunch" in economics.

I'm here to tell you that having lunch at my mother's is exactly what Markowitz was talking about.