Precision Investing

A little over half a century ago, the practice of investing underwent a dramatic change. In 1952, Harry Markowitz published a paper called “Portfolio Selection” in The Journal of Finance, setting out what he called the modern portfolio theory (MPT), a theory that would win him a Noble prize in 1990. Up until then, “Focus” investing prevailed. Focus investing seeks to maximize return by owning the stock of companies expected to produce the greatest return.