Harry Markowitz and my AFA presidential address

Abstract

Harry Markowitz had a great influence on my career, first as a source of new ideas and later as a mentor and friend. My relationship with Harry started when I discovered his 1959 book, Portfolio Selection Efficient Diversification of Investments, while I was a Ph.D. student at Columbia University. In 1963, I was looking for inspiration for my Ph.D. thesis. I stumbled across Harry’s book in the Columbia library. I read this book cover to cover. It changed the way I thought about finance and helped me formulate and finish my thesis. Later, when Harry was Vice President (President-Elect), the term of the editor of the Journal of Finance expired. It was the Vice-President’s job, together with the board of the AFA, to select a new editor for the Journal of Finance. I was delighted when I got Harry’s call asking me, along with my frequent co-author (Ned Elton), if we would like to be co-editors of the Journal of Finance. Naturally, we accepted and remained as co-editors for five years. In 1994, I was elected as President of the American Finance Association. To be elected, one first has to be nominated, along with one other candidate to stand for election. I think that Harry selecting me to be co-editor of the Journal of Finance, and the five years I spent in that role, generally increased my name recognition and contributed to my being elected as President of the AFA.