Dimensional Stories: The Impact of Indexing
As Dimensional Fund Advisors embarks on its 25th year of working with financial advisors, they shared with us a series of Dimensional Stories, two minute videos featuring Nobel Laureate Eugene Fama and/or David Booth speaking on the themes and insights that influence Dimensional’s way of investing. So far, we have shared three videos in the series accompanied by explanations and stories of how the videos relate to Yeske Buie:
- Dimensional Stories: Empirical Work
- Dimensional Stories: The 200th Draft
- Dimensional Stories: Make Sure It Isn’t an Old Idea in Disguise
We now share the fourth video of the five part series, Dimensional Stories: The Impact of Indexing. This short video features David Booth, founder and co-CEO of Dimensional, reflecting on the early days of indexing and the impact indexing has had on the investment world. In the video, Booth notes the importance of having an investment approach that Clients are willing to stick with and says, “Here you have a great investment approach, that leads to a great experience so that people will stay with it. The world is changing, but the same principles apply”. Similarly, Elissa and Dave have worked, for nearly a decade, to define the characteristics of an ideal financial planning policy as Clients and planners alike often struggle to stay the course when it comes to financial planning. With steady streams of news and gossip often providing little to anchor Clients and planners to a consistent course of action, we strongly believe that well crafted financial planning policies can serve both planners and their Clients by acting as a powerful touchstone in the midst of a rapidly changing world. Elissa and Dave have defined this as Policy-Based Financial Planning and have made various presentations and contribution on the topic.
We encourage you to read more about Policy-Based Financial Planning and to watch the video below to see how Yeske Buie and Dimensional’s views align.