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Old 11-06-2005, 02:50 PM
rockrock rockrock is offline
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Join Date: Jun 2005
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Default Re: Another book question

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To outperform, you need either inside information or access to the trading desks at the big brokerage houses.


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Why do you think that access to trading desks is going to help you with long term investments?? Specifically, what information do you think those traders possess that gives them an edge in long term investing? (I will note that knowledge of order flow does give them an advantage in short term trading)

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Fama and French have a bunch of Nobel prize winning economists they run around with who say the same thing,

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Fama is also the director of research of Dimensional Fund Advisors, Inc., an investment advising firm with $69 billion under management Obviously, they have convinced a few people that they can beat the indexes [img]/images/graemlins/wink.gif[/img]

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Straw man!!

DFA website plainly states "Market efficiency is at the core of Dimensional's investment philosophy."

These funds are only available through a network of financial advisors (a discussion for another day) but the funds are all PASSIVELY MANAGED and widely regarded to be the finest mutual funds in the world. Some investors will pay an advisor just to have access to the funds (although its against DFA practices and they will withdraw fund access from advisor if they find out).

Vanguard and some of the ETFs offer similar advantages but DFA are the obligatory shiznit.

More info on what makes them so great here
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