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  • The Random Walker, Visualizing How Markets Work

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    by Tom Allen and Mark Hebner — Wednesday, March 8, 2017

    Since the firm’s founding in 1999, investor education has been one of the cornerstones of our business model. Understanding the link between investment knowledge and risk capacity, our commitment to ...Read More

  • Eugene Fama: One of A Kind

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    by Tom Allen and Mark Hebner — Monday, June 6, 2016

    Academics are a hallmark of the investment strategy that we recommend to our clients. While there are plenty of sales pitches professing some sort of new or “hot” idea on how to get rich quick, we ...Read More

  • Forty-Two Years of a Random Walk Down Wall Street

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    by Mark Hebner — Thursday, September 3, 2015

    “If one of your New Year’s resolutions is to improve your personal finances, here’s a suggestion: Instead of picking up one of the scores of new works flooding into bookstores, reread an old ...Read More

  • Debunking the Inefficient Market Hypothesis

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    by Tom Allen and Mark Hebner — Monday, August 3, 2015

    It is not uncommon to find financial pundits, analysts, financial advisors, or investment consultants that are willing to recommend indexing when it comes to a particular segment of the market; mainly, large ...Read More

  • The Analysts Underestimate Apple Again

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    by Mark Hebner and IFA Contributors — Monday, February 9, 2015

    On 1/27/2015, Apple released a spectacular earnings report for the first quarter of its 2015 fiscal year. Once again, it smashed through the analysts’ predictions, earning $3.06 per share vs. a consensus ...Read More

  • Book Review: Commanding Heights

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    by Thomas Brunson — Tuesday, January 6, 2015

    There’s little more frustrating than being stuck in a traffic jam, especially when you’re trying to get somewhere important. The same can be said for the way developing and third-world countries ...Read More

  • The 40th Anniversary of a Classic Investment Article

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    by Mark Hebner and IFA Contributors — Friday, November 7, 2014

    We have recently marked the 40th anniversary of Nobel Laureate (and father of random walk theory) Paul Samuelson’s Challenge to Judgment which originally appeared in the Journal of Portfolio Management. ...Read More

  • Q&A with IFA: Prediction in Valuations

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    by Mark Hebner and IFA Contributors — Monday, June 30, 2014

    Question: Do valuation measures such as price-to-earnings or price-to-dividend ratios help predict future returns? Are they telling us anything now? Note: The question above was originally addressed in ...Read More

  • Q&A with IFA: Front Running and Fair Pricing

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    by Mark Hebner and IFA Contributors — Monday, June 23, 2014

    Question: What is the relation, if any, between the practice of "front running" trades and the efficient market hypothesis? Note: The question above was taken from DFA’s Fama/French Forum. Here is their ...Read More

  • Q&A with IFA: Seeking the Inefficient Asset Class

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    by Mark Hebner and IFA Contributors — Tuesday, June 3, 2014

    Question: We often hear the claim that some markets are less efficient than others—small company stocks, emerging markets, foreign exchange, and so on. Is there any evidence to support this assertion? ...Read More

  • The American Enterprise Institute Honors Eugene Fama

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    by Mark Hebner and IFA Contributors — Monday, May 12, 2014

    The American Enterprise Institute for Public Policy Research (AEI) is a private not-for-profit think tank whose stated mission is "to defend the principles and improve the institutions of American freedom ...Read More

  • IFA's Scientific Approach to Investing

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    by Mark Hebner and IFA Contributors — Tuesday, May 6, 2014

    Since its inception, Index Fund Advisors has always strived to take a scientific or academic approach to investing. We follow the evidence (i.e., long-term returns data) to wherever it leads us and we live by ...Read More

  • Comments on Barron's Dimensional Fund Advisors Profile [VIDEO]

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    by Mary Brunson and Mark Hebner — Friday, January 17, 2014

    "Active management is a zero-sum game, and that's before costs. That's not opinion, that's math." --Eugene Fama, 2013 Nobel Prize in Economics, Professor of Finance, Chicago Booth, as quoted in Barron's, ...Read More

  • Barron's Article on Dimensional Fund Advisors

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    by Mark Hebner and IFA Contributors — Monday, January 6, 2014

    Beverly Goodman of Barron’s was accorded the high honor of being the first reporter to attend one of DFA’s Financial Advisor Colleges. The article that she wrote about her experience, A Different ...Read More

  • Merton Miller

    Two Contrasting Views of Stock Markets

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    by Merton H. Miller and Charles W. Upton — Friday, December 20, 2013

    The casino view sees the stock market as largely a place where investors place bets on the near future prices of stocks rather than on the numbers on a roulette wheel or the spots on a pack of ...Read More

  • Harry Markowitz Reflects on Eugene Fama's Nobel Prize

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    by Harry M. Markowitz — Wednesday, December 18, 2013

    After Scholes and Merton won the Nobel Prize in Economics for their and Fisher Black’s work on option pricing, whenever I was asked who among financial economists I thought would get the Prize next, Gene ...Read More

  • The History of Finance in Four Minutes [VIDEO]

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    by Mark Hebner and IFA Contributors — Wednesday, December 11, 2013

    Anyone who has paid attention to us at IFA is fully aware of how excited we are about Eugene Fama being awarded the 2013 Nobel Prize in Economic Sciences.  Yesterday, the event reached its culmination in ...Read More

  • Eugene Fama's Nobel Prize Lecture [VIDEO]

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    by Mark Hebner and IFA Contributors — Monday, December 9, 2013

    This past Sunday (December 8th), Eugene Fama (along with Robert Shiller and Lars Peter Hansen) delivered his Nobel Prize lecture titled “Two Pillars of Asset Pricing.” This lecture should not to be ...Read More

  • If You Can't Beat 'Em, Join 'Em

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    by Mary Brunson and Mark Hebner — Monday, November 4, 2013

    "The current understanding of asset prices relies in part on rational investors and their concerns about risk and in part on psychology and behavioral finance." 2013 Nobel Prize Committee Announcement, October ...Read More

  • When As Good As It Gets Isn't Good Enough

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    by Mark Hebner and IFA Contributors — Friday, November 1, 2013

    One of the accusations constantly levied against 2013 Nobel Laureate Eugene Fama is that he uses his Efficient Market Hypothesis as a justification to denigrate all forms of financial regulation, including ...Read More

  • Fama’s Win: Made Sweeter Through Time

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    by Mark Hebner — Tuesday, October 22, 2013

    Eugene F. Fama was interviewed on CNBC's "Squawk Box" this past Friday about the recent financial crisis and financial regulatory reform.   Q. Are u ever surprised that certain things in the past we ...Read More

  • SBBI: The Almanac of Returns Data

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    by Ian Liew — Wednesday, October 16, 2013

    Stocks, Bonds, Bills, and Inflation (SBBI) is often characterized as the Almanac of returns data. This magisterial work originally produced by Roger Ibbotson and Rex Sinquefield is considered the go to place ...Read More

  • Eugene Fama Wins the 2013 Nobel Prize in Economics

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    by Mark Hebner and IFA Contributors — Monday, October 14, 2013

    At Index Fund Advisors, we were absolutely thrilled to hear the announcement by the Royal Swedish Academy of Sciences that the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2013 is ...Read More

  • The Separation Theorem

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    by Mark Hebner — Sunday, July 28, 2013

    Harry Markowitz was primarily concerned with the diversification of risky assets. James Tobin added the concept of combining risk-free assets, such as cash or bonds, with risky assets, such as ...Read More

  • Advocates of Capitalism

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    by Mark Hebner — Saturday, July 27, 2013

    Although not formally his professor, Ludwig von Mises may be considered a mentor of Friedrich von ...Read More

  • Putting Active Management to the Test

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    by Mark Hebner — Friday, July 26, 2013

    from the University of Chicago, Eugene Fama's graduate student, Michael Jensen, published "The Performance of Mutual Funds in the Period 1945-1965," in the Journal of Finance, ...Read More

  • The Capitalism, Inc. Stock Certificate

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    by IFA Contributors — Tuesday, May 14, 2013

    At Index Funds Advisors, we are sometimes asked if there is any company whose stock we would recommend buying. Our tongue-in-cheek answer is shown below: The brainchild of IFA’s founder and president, ...Read More

  • The Rule of 72: A Mathematical Thing of Beauty

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    by IFA Contributors — Tuesday, April 30, 2013

    As an admitted math geek, I never tire of learning new tricks that simplify otherwise complex calculations. Far and away my favorite trick is known as “the rule of 72,” which states that if you are ...Read More

  • F.A. Hayek: A Progenitor of Market Efficiency

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    by Mark Hebner and IFA Contributors — Friday, April 26, 2013

    “I am convinced that if it [the price system of a free market] were the result of deliberate human design, and if the people guided by the price changes understood that their decisions have significance ...Read More

  • Another Arithmetic Lesson from William Sharpe

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    by IFA Contributors — Friday, April 12, 2013

    Nobel Laureate William Sharpe is one of the academic linchpins of IFA’s investment philosophy. A year after winning the Nobel Prize in 1990, he penned a brief and elegant article1 showing that as whole, ...Read More

  • Papers Cited in IFA's Investment Policy Statement

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    by Mark Hebner and IFA Contributors — Thursday, February 28, 2013

    While any Wall Street firm can publish a "research report" that makes an unsubstantiated claim (e.g., Apple's share price will hit $1,000 by the end of the year), academic research is held to a completely ...Read More

  • A Problem with Jack Bogle? I Don't Think So!

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    by IFA Contributors — Tuesday, September 11, 2012

    For anyone who works in the investment advisory business, particularly on the passive side, John (Jack) Bogle is a name held in the highest esteem. A pioneer in the realm of indexing, the founder and longtime ...Read More

  • A Busy Week in the World of High Finance

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    by IFA Contributors — Thursday, June 28, 2012

    This is one of those weeks where we have so many juicy stories that I truly don’t know where to begin. How about another Madoff story? At last, we have the long-awaited and so richly deserved punishment ...Read More

  • Book Collector

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    by Guest Author: Farzam Khassian — Tuesday, May 29, 2012

    Book collector Farzam Khassian shares his thoughts on his hobby of collecting rare investment and financial books. He has collected more than 1,000 financial books over the years and has inspired Mark Hebner ...Read More

  • The Road to Serfdom

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    by Tyler L. Collins — Sunday, April 29, 2012

    The Road to Serfdom was written by Friedrich von Hayek in 1944. Friedrich von Hayek was a prominent Austrian economist during the twentieth century, and this book was one of his most important ...Read More

  • Harry M. Markowitz explains Portfolio Theory

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    by Index Funds Advisors — Wednesday, October 28, 2009

    what it is and how it's used from a top-down model from the asset classes to the investments. He covers Standard Deviation, Variance, Correlation, and Covariance. Markowitz also explains what happened in 2008 ...Read More