MarketWatch: “Picking Stocks Is a Losing Bet, This Market Legend Says”
David Booth explains how Dimensional uses research and a flexible approach to improve on index investing—focusing on market mechanics, not predictions.
In an interview with MarketWatch, Dimensional Founder David Booth discussed how the firm applies decades of academic research and a flexible, systematic approach to improve upon traditional index investing.
“We’ve developed ways of beating index funds,” Booth said. “We try not to outguess the market, but work with the market mechanisms that can add value [beyond] indexing.”
Booth emphasized the importance of investors understanding how markets work and using that to their advantage, instead of building an investment philosophy based on predicting which stocks will be winners. He also noted how starting early with a long-term plan can help investors take advantage of the power of compounding over time.
Read the full MarketWatch article here.
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Eugene Fama is a member of the Board of Directors of the general partner of, and provides consulting services to, Dimensional Fund Advisors LP.
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