|
|
|
|
Basics that savvy investors should understand |
|
Written by Richard Buck
|
|
May 12, 2009 |
For years we have been describing Dimensional Fund Advisors as the best mutual fund company for long-term investors, for many reasons. DFA’s web site has a frequently asked questions page that describes some of the basic principles behind its style of index investing.
What would happen if all investors bought index funds? Is the success
of an index fund a self-fulfilling prophecy? How do DFA portfolio
managers decide what stocks to buy, since the company doesn’t strictly
follow indexes? If value stocks have higher long-term returns than
growth stocks, why not invest exclusively in value stocks?
For DFA’s take on these and other topics, click here.
|
|
|
|
|
