The Science of Investing and Tuning Out the Noise With David Booth (EP.194)
Release Date: 03/05/2025
The Long Term Investor
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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