Dimensional Fund Advisors

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#1
DFA kept appearing as one of the institutional shareholders when I looked for more info on some of the popular counters in VB. Examples are Penguin, CMP. I decided to find out more about them. While I do not really understand their method, I am totally impressed with the qualification of their management ( Nobel winners, PhD, Rocket Scientist ).

http://online.barrons.com/news/articles/...2021894432

Excerpt:

"With 3,000-plus active managers, some are going to look good -- but that's what you'd expect as a matter of chance," he says. "It's very difficult to tell luck from skill." Even to the extent that skill is involved, stock-picking is not a repeatable process with the consistency and persistence of returns that would enable investors to anticipate which managers are likely to outperform -- especially given the cost of making those bets. "Active management is a zero-sum game, and that's before costs," Fama says. "That's not opinion. That's math."
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#2
Do see some of the old folks from LTC making a comeback..Myron Scholes, Merton etc...20 years on, i think they are much better stewards of your capital now.
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#3
(19-10-2014, 11:47 PM)touzi Wrote: DFA kept appearing as one of the institutional shareholders when I looked for more info on some of the popular counters in VB. Examples are Penguin, CMP. I decided to find out more about them. While I do not really understand their method, I am totally impressed with the qualification of their management ( Nobel winners, PhD, Rocket Scientist ).

http://online.barrons.com/news/articles/...2021894432

Excerpt:

"With 3,000-plus active managers, some are going to look good -- but that's what you'd expect as a matter of chance," he says. "It's very difficult to tell luck from skill." Even to the extent that skill is involved, stock-picking is not a repeatable process with the consistency and persistence of returns that would enable investors to anticipate which managers are likely to outperform -- especially given the cost of making those bets. "Active management is a zero-sum game, and that's before costs," Fama says. "That's not opinion. That's math."

Interesting finding. I will explore more

I am skeptical on math-driven investing. It reminded me of the LTCM, also with Nobel prized economist on board. A "can't miss" by math, but a failed case in real life. Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#4
Strange i thought Buffett already common sensically addressed that maths thingy 30 years ago with the Doddsville article
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#5
DFA are the pioneers in the FAMA approach to indexing. Very big on low cost and indexing.I am surprised they are in these businesses.
Dividend Investing and More @ InvestmentMoats.com
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