IL52: Why Staying Calm Is the Ultimate Investing Edge ft. David Booth

In today’s episode we talk with a pioneer of modern asset management, Dimensional Fund Advisors founder David Booth. David founded Dimensional in 1981 and it has since grown to over $1 trillion in assets, making it one of the most successful quantitative investment firms in history. We talk with him about his new book, Stay Calm: Learn to Embrace Uncertainty in Investing and Life. We discuss his early career working on both the world’s first index fund and the first active quant strategy developed by finance legends Fischer Black and Myron Scholes. David explains why successful investing involves embracing uncertainty - because it is that uncertainty that generates long-run returns. He explains why we should abandon predicting markets and focus instead on planning. We end by discussing why he is both a realist and optimist and how each of us can cultivate the same mindset.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Episode TimeStamps:

00:00 - Why uncertainty creates opportunity for long term investors

01:01 - David Booth's journey from Kansas to pioneering modern investing

06:13 - The birth of index investing and the origins of Dimensional

10:21 - Why investing is about managing uncertainty not predicting markets

13:00 - Why everyone should own part of the market

14:00 - Human ingenuity, market resilience and the lessons of history

18:02 - Updating research without abandoning first principles

23:38 - Has the rise of index investing changed the market?

28:45 - Diversification beyond the Magnificent Seven

29:52 - Tuning out market noise and focusing on what matters

32:23 - Why life events should shape your portfolio more than headlines

34:53 - Plan don't predict and learning to stay calm

39:02 - Optimism, realism and why markets continue to work

42:33 - Why investors have never had it better

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Disclaimer

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