David Booth: 45 Years to $1 Trillion at Dimensional | #646
Today’s guest is David Booth, founder of Dimensional Fund Advisors, which now manages over $1 trillion. He studied under Eugene Fama at Chicago and helped build one of the first index funds at Wells Fargo. In today’s episode, David traces Dimensional’s arc from indexing’s earliest days at Wells Fargo to crossing $1 trillion in AUM this year. He shares what Gene Fama said when he got the call, the story of driving a client to Chicago to walk through the Fama-French paper, and why AI investing looks like the California gold rush. To close, David makes the case for judging yourself by decisions, not outcomes.
Key Points
- David Booth emphasizes the importance of staying invested for the long term and understanding market fluctuations to achieve better returns over time.
- The evolution of investing, particularly the introduction of index funds and the Fama-French three-factor model, has significantly reduced costs and improved accessibility for investors.
- Financial education is crucial for better investment decisions, and understanding basic economics can help mitigate anti-capitalist sentiments and encourage smarter financial behaviors.
Follow David: Website; LinkedIn
Resources: Stay Calm: Learn to Embrace Uncertainty in Investing and Life
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Chapters
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Transcript
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