About the Book: Digital Fortunes : A Value Investors Guide to the New Economy
For their pioneering work in the valuation of stock options, Robert Merton and
Myron Scholes were awarded the Nobel Prize for Economics in 1997. The two
laureates were also partners in a hedge fund which invested in stock options. It
was a huge fund that had to be saved from bankruptcy in 1998 after the Russian
financial crisis. Scholes went on to set up another hedge fund. This too went
bankrupt in 2008. What is true for these Nobel laureates is true for most of
us--the so-called pulse of the market is