David Booth, Dimensional Fund Advisors
Every trader and manager strives for individuality, developing their own strategies and investment schemes, as well as a set of rules.
However, to achieve success on the exchange, there is no need to strive to create something new, as there are thousands of traders on the market whose algorithms are working successfully and demonstrating profitability.
Perhaps it's easier to take a successful investor's established approach and strictly adhere to it? Many would disagree with this assertion and continue to search for something of their own.
At the same time, the biography of David Booth, owner of Dimensional Fund Advisors, proves that with smart borrowing, you can achieve truly great things.
David Booth's biography is not overflowing with details from his childhood, much less facts that might indicate that he was a gifted child and that all his successes were predetermined by fate.
In fact, Bout is an extremely systematic and consistent person, and his biography does not stand out with any bright colors, with the exception of the last years of his life.
Training and Career
David Booth was deeply drawn to science and research. As a child, he attended Lawrence High School. While in Kansas, he attended the local university and graduated with honors, earning a bachelor's degree in finance.
He continued his studies at the same university, but received a master's degree in business administration.
Continuing his research career, he enrolled at the University of Chicago as a doctoral student. There, he had a fateful encounter with his supervisor that forever changed his understanding of finance and forced him to shift from theoretical to practical knowledge.
David Booth found himself under the wing of renowned economist Eugene Fama, who at that time was actively developing the theory of stock pricing and also conducting a series of studies in order to find certain patterns in price movements.
The most interesting thing is that David Booth impressed his supervisor so much that he did everything to show his student the way into the world of finance.
It was thanks to Evgeniy that David Booth met his future partner and future founder of Dimensional Fund Advisors, Rex Sinquefield.
The teacher also took care of his student's first job, sending him to John (Mac) McQuown, who founded the first index fund of that time, Wells Fargo & Co.
The knowledge and experience gained allowed David Booth to build an excellent team and his own fund, Dimensional Fund Advisors. Nobel laureate Eugene Fama was invited to join as a professional, putting his theory into practice.
The fact is that David Booth, while conducting a series of studies in the field of investment portfolio compilation together with his supervisor, discovered that it is best to invest in weakly capitalized companies or in undervalued assets.
He calculated that investing in brands and leading companies did not allow him to achieve the market returns that could be achieved by simply buying an industry index.
Thus, from the very beginning of the fund's operation, David Booth began actively buying shares of small-cap companies and undervalued stocks, and in most cases these were stocks from outside the US.
This strategy yielded excellent results, as after a while, most of the purchased securities demonstrated excellent growth. This successful performance served as excellent publicity and allowed for increased investment. The fund currently manages over $450 billion.
In addition to his investment achievements, David Booth is actively involved in the development of science and makes donations to various fields.
So, in 2008, he donated $300 million to the Chicago Graduate School of Business, with the donations coming in both cash and shares of Dimensional Fund Advisors, which will allow the university to earn dividends in the future.
At this stage, this scientist-investor's personal fortune is estimated at more than $1.3 billion, and he continues to serve as the head of Dimensional Fund Advisors to this day.
