Words of Wisdom From Booth
“I don’t obsess over the short-term ups and downs of the market. I want to make sure I stick around to capture the long-term ups.” –David Booth, Executive Chairman, Dimensional Fund Advisors
For my money, Booth is one of the smartest and most successful people in the investment business. He has a simple philosophy that is rooted in decades of academic research. Check out this article from Business Insider where he shares his views on the importance of investing for the long-term and focusing on factors you can control: Billionaire David Booth says focusing on long-term investing strategy will help you get the returns your expecting
The stock market has gone up, on average, about 10% per year over the last century. That’s the expected long-term return. In any given year, the market hardly ever goes up by 10%. It’s up, down and all around. The only way to achieve the long-term average is to stay patient and stay in your seats. That’s exactly what we do here at Verity Capital. We construct portfolios that give us the greatest chance of capturing the long-term expected returns of the markets relative to your personal risk tolerance.