Bloomberg’s “Odd Lots”: Eugene Fama and David Booth on the Birth of Modern Finance
On an episode of Bloomberg’s Odd Lots, Nobel laureate Eugene Fama and Dimensional Founder David Booth discussed the development of the efficient market hypothesis (EMH) and its impact on the world of investing.
During the interview, Fama reflected on his early attempts to outperform the market, noting that strategies often succeeded in sample, but failed out of sample. This, he said, served to reinforce the EMH’s claim that markets efficiently incorporate information. Booth, meanwhile, emphasized the importance of accessible data for research and its impact on the industry.
Fama and Booth also chatted about their collaboration over the last 50-plus years, touching on many of the stories featured in the documentary Tune Out the Noise.
Listen to the full Odd Lots episode here.
Disclosures
Dimensional personnel participate only as guests on the “Odd Lots” podcast. Dimensional does not sponsor or produce the podcast content and is not responsible for the selection or inclusion of any paid or unpaid promotional content in the podcast. Dimensional is not affiliated with, or compensated by, any third parties identified in such promotional content and does not recommend or endorse such third parties.
Eugene Fama is a member of the Board of Directors of the general partner of, and provides consulting services to, Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value
Dimensional Fund Advisors does not have any bank affiliates.