Harnessing Empirical Finance in Long-Term Investing Strategies with Dimensional’s Savina Rizova
Excess Returns
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Is Blended Metrics Better Than Single Metric?
The spread has been widening in recent years because of growth stocks valuation ratio is growing very very high relative to historical averages and values that kind of stay where they have been or after sticking here. Picking up on the idea of price to book you know one of the big criticisms of price tobook in recent years is this idea that there are way more intangible assets than there were 20 years ago. The dimensional we think deeply about implementation highly how does pursuit of prior expected returns interact with diversification risk trading costs. We prefer to focus on a metric that's a little bit more stable lower turnover with similar kind of performance over the long term.
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