David Booth Brings Academic Research to Life

Dimensional Financial Advisors Founder and Co-CEO David Booth has received a “Manager Lifetime Achievement” award from Institutional Investor. The magazine described David as a leader who “shaped Dimensional into a manager that refined . . . academic theories and applied them so investors could profit in the real world.” Dimensional was founded in 1981.

The United States Olympics team won a record number of medals during the 2016 summer games in Rio. Thousands of athletes invested years and substantial family resources for the small chance of a coveted spot as an “Olympian” on a U. S. team numbering about 550. Competing against the best athletes in the world, few U. S. Olympians participated in the many finals (despite what selective media focus implies), and only a handful finally won gold medals.

The most successful Olympian of all, retiring Michael Phelps, after winning no medals in his first Olympics, has competed less than twenty years. No one predicted 23 Olympic medals over his astonishing career. (The next highest is 9 medals.) Competition among many thousands of investment firms and many tens of thousands investment managers worldwide is no less demanding than competition to qualify for eventually participating in the Olympics. Few notable portfolio managers can survive two decades in this business. Starting in a small Brooklyn brownstone apartment with only one fund over 35 years ago, Dimensional’s revolutionary success from its highly evidence-based approach employing renown financial scientists and astonishing emergence as a global leader is progressively redefining the conventional investment industry.

Working closely with some of the industry’s most respected financial economists such as Nobel laureate Professor Eugene Fama and his long-time collaborator Professor Kenneth French, Dimensional is committed to bringing academic research to practical life in the form of distinctive empirical strategies. Dimensional portfolios have provided Professional Financial trusted strategies for wealth management. As client portfolios have prospered since we integrated Dimensional and index funds into our portfolio planning nearly twenty years ago, and as clients have shared their financial progress with family and friends, Professional Financial has continued to grow as a trusted advisor.

In this video interview of top money managers by Institutional Investor during the 2016 U. S. Investment Management Awards dinner in New York City, David Booth shares his belief that the investment industry will benefit from delivering more innovative services to serve the needs of average people, and not just from focusing on only institutional investors such as pension plans. (Click for video)