Myron Scholes Quotes & Sayings

“Every side of a coin has another side.”

“Sometimes the early bird gets the worm, but sometimes the early bird gets frozen to death.”

“Most of the time, your risk management works. With a systemic event such as the recent shocks following the collapse of Lehman Brothers, obviously the risk-management system of any one bank appears, after the fact, to be incomplete. We ended up where banks couldn't liquidate their risk, and the system tended to freeze up.”

“Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.”

“A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'”

“All models have faults - that doesn't mean you can't use them as tools for making decisions.”

“If someone says to you, 'Go to an old-folks' home,' that's kind of ridiculous, because a lot of old people are doing terrific things for society.”

“If we internationalize everything, we end up with rules that stifle freedom and innovation.”

“I was involved with Wells Fargo Bank as a consultant in the late 1960s and early 1970s, when I suggested to them that they develop a product that has become known as index funds.”

“My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.”