Peter L. Bernstein is President of Peter L. Bernstein, Inc., an investment con-sultant firm he founded in 1973, after many years of managing billions of dollars in individual and institutional portfolios. Bernstein is also the author of ten books on economics and finance, including the bestselling Capital Ideas, Against the Gods: The Remarkable Story of Risk, and The Power of Gold: The History of an Obsession. He has lectured widely throughout the United States and abroad, and has received the highest honors from his peers in the investment profession.
A Note on Usage.
PART I: THE BEHAVIORAL ATTACK.
1. Who Could Design a Brain . . . .
2. The Strange Paradox of Behavioral Finance: “Neoclassical Theory Is a Theory of Sharks”,
PART II: THE THEORETICIANS,
3. Paul A. Samuelson: The Worldly Philosopher.
4. Robert C. Merton: “Risk Is Not an Add-On”.
5. Andrew Lo: “The Only Part of Economics That Really Works”.
6. Robert Shiller: The People’s Risk Manager.
7. Bill Sharpe: “It’s Dangerous to Think of Risk as a Number”.
8. Harry Markowitz: “You Have a Little World”.
9. Myron Scholes: “Omega Has a Nice Ring to It”.
PART III: THE PRACTITIONERS.
10. Barclays Global Investors: “It Was an Evangelical Undertaking”.
11. The Yale Endowment Fund: Uninstitutional Behavior.
12. CAPM II: The Great Alpha Dream Machine: We Don’t See Expected Returns.
13. Making Alpha Portable: “That’s Become the New Mantra”.
14. Martin Leibowitz: CAPM in a New Suit of Clothes.
15. Goldman Sachs Asset Management: “I Know the Invisible Hand Is Still There”.
PART IV: CAPITAL IDEAS TOMORROW.
16. Nothing Stands Still.