Rockbridge Named #81 on CNBC's Top 100 Fee Only Wealth Mgmt Firms List
Oct 16

DFA board director Eugene Fama awarded the Nobel Prize in Economics

by Anthony Farella

Eugene Fama of the University of Chicago is one of three economists just awarded the Nobel Prize in Economics. Fama is best known for his formulation of the “efficient market hypothesis,” or EMH.  For investors, the main practical implication of the EMH is the superiority of “passive management” (which means matching market returns) rather than “active management” (meaning the pursuit of excess returns).  Therefore, the best way to participate in financial markets is to capture the returns of various asset classes at the lowest possible cost.  Professor Fama’s groundbreaking work on asset pricing and markets inspired the founding of Dimensional Fund Advisors (DFA).  Dimensional fund shares are not available directly to individuals but are limited to clients of a select group of fee-only financial advisory firms. The relationship between Dimensional and the independent advisor is based on shared views about how capital markets work and how best to provide clients with a successful investment experience.

We at Rockbridge would like to offer our congratulations to Professor Fama.

About the Author

Tony Farella, is a Certified Financial Planner® and a Principal Founder of Rockbridge Investment Management.  Tony is a contributor to Forbes, CNN Money, NAPFA’s FI Guide, Advisor Perspectives and local tv, radio and print publications.  Tony is the board director for NAPFA New England-Mid Atlantic Region), previous board member of the Financial Planning Association of CNY, acting Board Member of the Downtown Syracuse YMCA, as well as the Board of Directors for Countryside Credit Union.
Learn more and/or Contact Tony »

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