The field of financial planning and investing is an ever-broadening frontier. To be a successful investor, it’s crucial to be familiar with today’s leading financial-research pioneers. Harnessing robust investment methods can make all the difference in today’s market. Here’s a selection of examples which will help widen your horizons.
David Booth, Rex Sinquefield and Eugene Fama:
- Dimensional Funds was founded by David Booth and Rex Sinquefield, who met as graduate students while pursuing their MBAs at the University of Chicago. They served as research assistants to Eugene Fama who is widely credited as being the father of the Efficient Market Hypothesis.
- Mr. Booth and Mr. Sinquefield, inspired by the cutting edge academic research that was being introduced in the fields of finance and economics, took their new-found passion and translated that into action.
- That action was the birth of Dimensional Funds.
DFA takes academic, investment research and applies some of the strategies to the way they manage their mutual funds. Some of the great contributors to this branch of research are affiliated with DFA. The more prominent names are:
Eugene F. Fama, Robert R. McCormick Distinguished Service Professor of Finance with the University of Chicago Graduate School of Business,
- Kenneth R. French, Heidt Professor of Finance with Dartmouth College’s Tuck School of Business
- Robert C. Merton, Nobel laureate, John and Natty McArthur University Professor with Harvard University’s Business School
- Myron S. Scholes, Nobel laureate, Frank E. Buck Professor Emeritus of Finance and Law with Stanford University’s Graduate School of Business.
- Roger G. Ibbotson, Professor in the Practice Emeritus of Finance, Yale School of Management
An excellent in-depth summary of DFA and their methods of managing money, “Putting Financial Science to Work”, is available here in a PDF format.