David Booth, the co-founder of Dimensional Fund Advisors, has written an article for Worth which is well worth reading.
Here are some of the things he had to say.
The markets as a raging river
“Think of the markets’ force as a raging river. Any experienced rafting guide will tell you not to fight the rapids. You’re better off charting your course, adapting incrementally and not oversteering.”
Shift your thinking, not your investments
“If you’re living in fear of the next downturn, consider shifting your thinking instead of your investments. Focus on controlling what you can control… Don’t mistake activity for achievement.”
The benefits of EBI go way beyond investing
“Know that there is a growing field of professionals fuelled by science, not speculation. If you accept a different view of markets, the benefits can go way beyond just investing money. Learn the science, accept a few truths and live your life differently.”
The need for better, safer financial services
“The industry has advanced with science, but not enough. Even index funds, which were designed to deliver market returns, are now being used to try to time the markets. We can improve people’s lives with better and safer financial services.”
The challenge facing young financial professionals
“My hope for young professionals entering finance is that the industry embraces science, challenges norms and comes up with new ways to help more investors.”
You can read the whole article here:
Living in fear of a market downturn?
Related posts:
David Booth on AK47s and the inverted yield curve
David Booth: These three things will help you stay the course
Booth and Fama: a 50-year friendship that changed investing
Picture: Felix Serre via Unsplash
