A trillion, at least in the US is 1,000,000,000,000. (Interestingly, in the UK up until 1974 it was bigger, one million times bigger.)
- If you had time to pile up a trillion dollars in $100 bills you’d need a big ladder, a head for heights, and a steady hand. It would be 631 miles high.
- A trillion seconds is the equivalent of 31,688 years.
- If you spent $1m a day, it would take 2740 years to spend $1 trillion.
Okay so $1 trillion is a big number, but behind this particular big number is a story that was 45 years in the making. In 1981 David Booth removed the furniture from the back bedroom of his Brooklyn apartment and put in desks. Dimensional Fund Advisors was born.
The plan was simple. First, show people a better way to invest using science and proven, robust academic research demonstrating how investment markets really work, and where returns come from. Secondly, evangelise investors demonstrating the efficacy of an evidence-based investing philosophy. It has clearly worked. This month Dimensional’s funds under management passed the $1 trillion mark.
Despite their global scale Dimensional continue to pay close attention to their supporters. We enjoy a great collaborative working relationship through regular investment and training meetings, peer group forums, alongside practice management support.
Our clients have benefitted from solid long-term investment performance, a policy of reducing fund costs each year, and applying trading efficiencies that are proven to enhance investor returns.
Dimensional never advertise, no quirky tv ads, posters on tube walls or billboards, no stickers on taxis. All of that costs money – money they would rather spend on research, resources or reducing client fees.
Dimensional only work with selected advisers in the UK, and we are delighted to be one of them.
Congratulations to David and his team. They set out to prove there was a better way to approach investment markets focussed on where returns come from. They promoted long-term investing. They supported the idea of having a lifetime financial plan, not a get rich quick plan, more of a have a goal, get rich slow, and live life to the full plan.
We like that idea. It has served Stewardship Wealth and our clients well since we started in 2018 when Simon moved the furniture in a back bedroom, and Stewardship Wealth was born.
Dimensional recently released a fascinating documentary called “Tuning Out The Noise” tracing its journey from its early days and the many academics and Nobel Laureates it gathered along the way. For those interested in knowing more here is the link: Dimensional – Tuning Out The Noise (YouTube)