On the Money: Investment Philosophy and Implementation

On this episode of "On the Money," Paul Ruedi, David Ruedi, CFP®, and Ryan Repko, CFP® take a deep dive into investment philosophy and implementation with special guest Erik Schulte, CFP® from Dimensional Fund Advisors.

(2:14) Introducing Erik Schulte and Dimensional Fund Advisors

(4:02) When and why Paul started using DFA funds for clients

(8:57) What makes Dimensional Fund Advisors different

(11:54) Where do DFA funds fit in between index funds and traditional actively managed funds

(13:58) What factors explain differences in stock returns?

(15:14) ETFs

(19:40) The Size premium

(21:54) The Value premium

(24:14) The profitability premium

(28:13) When the premiums don’t perform

(35:54) The importance of investment philosophy

(38:37) A company’s cost of capital = investors’ expected returns

(41:11) How is DFA different from index funds

(50:36) Beating the market