Myron Scholes, a computer nerd, completed his PhD at the University of Chicago and became assistant professor of finance at MIT. He met Fischer and talked about their respective researches and projects. They both had the same objective in developing applications of the new financial theory. Moreover, these two men were intellectually complementary. On the one hand, Fischer, a theory guy, questioning and reserved. On the other hand, Myron, a data guy, brash and outgoing.
In 1969, Fischer started his own consulting practice, the Associates in Finance, with Myron Scholes as first associate. Their big client was Wells Fargo Bank. Despite strong competition, they were the best consultants ever hired by the bank. It was the occasion to implement their vision of CAPM.
Fischer loved to work for Wells Fargo Bank because it was the perfect combination of detachment and engagement. Few years later, he did the same for Goldman Sachs.
A for Jamon.
ReplyDeleteNot too much in this section: just name-dropping and setting a backdrop.
Scholes — a later Nobel Prize winner — is, of course, the big name. But Michael Jensen and Richard Roll are both involved with Black at this time, and are still on everyone's medium list for a Nobel Prize.
P.S. This is the same Richard Roll I mentioned earlier in the semester: who's been using his own money to test for market inefficiencies for the last 40 years.
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