On Monday, the Nobel committee awarded its annual prize in economics to three professors, including Eugene Fama. Fama’s groundbreaking research inspired the founding of my fund manager, Dimensional Fund Advisers, and has guided their investment approach for 30 years. If you want to invest with a Nobel Prize winner, we should talk.
The Nobel committee recognized Fama for his decades of research proving that stock prices are unpredictable in the short-term but follow established patterns in the long-term. Financial science is the core of everything Dimensional does. Their academic research – led by Prof. Fama – provides strong evidence of which types of stocks and bonds will out-perform in the long-term. Dimensional uses this research to generate returns that, historically, have beaten the market. In the past 10 years, for example, 24 of their 31 stock funds beat their indices and another 3 effectively matched it after fees. I don’t know any fund manager which can do better than Dimensional. If you want to learn more, see http://www.dimensional.com/.
Fama, a University of Chicago professor, remains a director of Dimensional, where he spends significant time. I had the honor of meeting him several years ago at their offices.
The deep research done by Fama and his Dimensional colleagues, and their discipline, convinced me to use them almost exclusively. If you’re not using them, let me help you benefit from their wisdom.