Modern portfolio theory became the dominant approach to money management starting in the late 1970s and early 1980s following the 1973-74 bear market, when Wall Street needed a framework to explain market crashes and people adopted variance-as-risk as a solution.
causalpending
Speaker
Robert HagstromEvidence Quote
“following the 7374 uh bare market... somebody mentioned market wits and variance of return... everybody went yeah that's a great idea”
Source
Warren Buffett Published His Whole Playbook | Robert Hagstrom on Why Only One Tenth of 1% Uses It— Excess ReturnsCreated: 8/12/2026, 6:12:15 PM
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