FEAR & GREED | Business News Interview: $1.3 trillion fund advisor's unique view on market noise
May 28, 2025
Dave Butler, Co-CEO of Dimensional Fund Advisors and former Boston Celtics draft pick, shares insights from his transition from sports to finance. He discusses the importance of maintaining a long-term investment strategy amidst market noise and emotional fluctuations. Listeners learn the distinctions between passive and active investing while enjoying anecdotes from his basketball days. Butler highlights Australia's pivotal role in global asset management, emphasizing its unique investment landscape and the value of strong advisor-client relationships.
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Tune Out Market Noise
- Avoid reacting to short-term market noise for successful investing.
- Stick with a disciplined long-term investment approach and policy set with your advisor.
Separate Speculation From Investment
- Allocate 90-95% of your portfolio to long-term investments and 5-10% to speculative trades.
- Use your speculative portfolio to act on market noise without risking your main investments.
Value of Financial Advisors
- Use financial advisors to guide long-term investment and wealth planning.
- Advisors understand your personal context and help keep investment decisions aligned with your goals.