Manalanobis translates a segment of a Myron Scholes interview with an Austrian newspaper in which Scholes comments on ‘the best way to reduce risk.’
Scholes is a co-developer of the Black-Scholes-Merton option pricing formula. Scholes and Merton won a Nobel in part for their work on options; Black had died before the Nobel was awarded. Scholes was part of Meriwether’s arbitrage group at Salomon Brothers, and later a partner of Long Term Capital Management.
I apologize in advance for subjecting you to this bit of humor.
Do you want a little more Scholes? Deborah Solomon interviewed him in the 17 May 2009 issue of the New York Times Magazine.
Nota bene: You will NOT learn anything about option pricing from either of the above links.
See subsequent post Option Traders Use (very) Sophisticated Heuristics, Never the Black–Scholes–Merton Formula.
Suffice it to say that Richard’s opinion of Black, Scholes, and Merton is far different from my opinion.