It’s 40 years ago this week that Dimensional Fund Advisors was founded. Here are five timeless investment lessons that one of its founders, DAVID BOOTH, has learned in that time.

Early in my career, I was lucky enough to work on one of the first index funds. It was an incredibly exciting time, because before that the only equity option for investors was to pick stocks. The academic evidence from people like Gene Fama—my graduate school advisor, who would later be recognised as a Nobel laureate — showed there was a better way to approach investing, but no one had put it into practice yet. So we did. Forty years ago, we started Dimensional Fund Advisors because we believed there was a way to invest that was better than stock picking and improved upon index funds.

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Written By: Robin Powell

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