Why evidence-based investing and academic evidence are the same thing

By Sam Instone - May 28, 2018

Some financial professionals are dismissive of academic research.

They argue that it’s too far removed from the realities of today’s financial markets.

True, academic models are, by their nature, theoretical.

But that doesn’t mean investors can’t learn practical lessons from them.

I've often spoken about Dimensional Fund Advisors.

Amongst its founders is a Nobel Prize-winner.

3 others also have very close associations with the firm.

Ever wondered where most insights surrounding lifecycle finance or how to structure portfolios come from?

Nobel Prize-winners.

And then there is the most famous contribution that academics have made to our understanding of the financial markets…

Investors need to learn from academia and its models of the world.

So that when they come to the real world, they’re better equipped and have better frameworks to make rational investment decisions.

Dimensional is possibly unique among asset managers in that everything it does is based on empirical evidence.

Over the years, the firm has worked with some of the most famous names in academic finance.

Get in touch to find out how Dimensional might be right for you.

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