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Who's minding the ship?

| October 25, 2022
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Professor Douglas Diamond Awarded Nobel Prize

With the financial markets in turmoil, you could be asking yourself, “Who’s minding the ship?”  Everyday seems to bring on more volatility in the stock and bond market.  Inflation is making groceries more expensive.  Now just in time for winter, the cost of heating oil and gas is projected to jump.

You want to know that your investments are invested in a manner that is prudent.  There is no time for guess work or the latest fad.  Let someone else try to double their money overnight with a meme stock.  You are satisfied with investment strategies based on research and are looking for confirmation you’re doing the right thing.

Perhaps that confirmation was buried in a newspaper article earlier this week.  You may have seen headlines that former Federal Reserve chief Ben Bernanke was awarded the 2022 Nobel Prize in Economic Sciences.  But if you read deeper into the article, you would have seen that Bernanke was honored along with Philip H. Dybvig, and economist at Washington University in St. Louis, and Professor Douglas W Diamond who is the Merton H Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business.  Professor Diamond also serves as the lead Independent Director of Dimensional Fund Advisors’ (DFA) board on US Mutual Funds and ETFs. 

Professor Diamond’s award continues the tradition of strong ties to esteemed scholars and is part of the reason we choose to invest your money through DFA and Buckingham Strategic Partners.  We believe their work in building research-driven investment solutions will help lead your account out of the current economic difficulties. 

Professor Diamond is the fifth academic with deep connections to DFA to receive the Nobel Prize. Three founding members of the board of directors of the company or the company’s funds—Eugene Fama, Merton Miller, and Myron Scholes—previously received the award. Robert Merton, currently the firm’s Resident Scientist, is also a Nobel laureate.  Harry Markowitz, Ph.D., the 1990 Nobel laureate for his work on Modern Portfolio Theory, serves as an Advisor to Buckingham Strategic Partners’ Investment Policy Committee.  That brings the total to 6 Nobel laureates whose efforts are being utilized to develop the evidence-based investment strategies utilized in your portfolio.

Of course, hiring the best and the brightest does not guarantee investment success.  At times even the most well researched plan may not produce the desired results.  However, isn’t reassuring to know The Royal Swedish Academy of Sciences who award the Nobel prize annually has recognized several of the researchers guiding your investment decisions?


Please note, if you would like to learn more about the research of any of the people mentioned in this email, please inquire at team@sherpafinancial.com. We would welcome the opportunity to provide that education.

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