What a wonderful surprise! It came on October 13, while I was eating lunch in Frankfurt, Germany, with Christoph Kanzler, head of Germany for Dimensional Fund Advisors. The timing was perfect.
We learned that one of our heroes, Eugene Fama of the University of Chicago, had just won the Nobel Prize in economics for his ideas about asset pricing and market efficiency. After 20 years of advocating for Professor Fama’s ideas—and seeing their positive impact on Independence Advisors and our clients—I felt deeply moved by this recognition of his impact on the financial world. Christoph is also a supporter of Professor Fama, whose ideas inspired the investment process of Dimensional Fund Advisors.
The news was timely because Christoph and I were ready to start a week of speaking about Professor Fama’s ideas and other key concepts in modern finance to German financial advisors. Our goal? To demonstrate how those concepts could help advisors deliver better advice to their clients. As you might expect, the Nobel committee’s decision impressed the advisors whom we met that week. I’m glad that the award made them more open to his ideas. As a result, that week in Germany was one of the most rewarding professional experiences of my career.
Professor Fama’s ideas shaped the founding of Independence Advisors. They have helped us improve our clients’ lives through cost reduction, diversification and investment discipline. We owe a lot of our success to Professor Fama’s hard work.