The Science of Investing and Tuning Out the Noise With David Booth (EP.194)

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David Booth, founder of Dimensional Fund Advisors, joins me to discuss how academic research transformed investing by challenging Wall Street's stock-picking culture. We explore why markets function as an information-processing machine, how the efficient market hypothesis reshaped portfolio management, and why most investors are better off embracing evidence-based strategies.

 

Listen now and learn:

► How the rise of evidence-based investing disrupted traditional stock-picking.

► The role of human ingenuity in driving long-term investment returns.

► How to separate signal from noise and focus on what really matters for your portfolio.

 

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

 

(02:00) From Selling Shoes to the Science of Investing

(04:08) The University of Chicago & The Birth of Evidence-Based Investing

(06:30) Wall Street's Traditional Approach vs. The Academic Revolution

(14:00) The Hidden Order in Markets—And Why Human Ingenuity Drives Returns

(16:30) The First Index Funds & The Rise of Dimensional

(24:50) Active vs. Passive? Why That's the Wrong Debate

(28:00) Separating Signal from Noise—How Investors Get Distracted 

(29:50) Why More Investors Haven't Adopted the Science of Investing

(33:00) David's Advice to His Younger Self

📺 Watch the documentary Tune Out the Noise
www.youtube.com/watch?v=T98825bzcKw