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.
-----
50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
-----
Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.
IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.
And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.
Learn more about the Trend Barometer here.
Send your questions to [email protected]
And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.
Follow Kevin on SubStack & read his Book.
Follow David on LinkedIn and Read his Book.
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
Copyright © 2025 – CMC AG – All Rights Reserved
----
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
Otros episodios de "Top Traders Unplugged"
No te pierdas ningún episodio de “Top Traders Unplugged”. Síguelo en la aplicación gratuita de GetPodcast.
