E + R = O: A Formula for Success. By David Jones.

Investing isn’t just about what happens to us, it’s about how we respond.

One of the most powerful concepts we have come across recently is by David Jones, at Dimensional. He introduces a deceptively simple yet profoundly effective formula:

E + R = O Event + Response = Outcome

We can’t control market events — interest rate shocks, inflation surprises or political turmoil — but we can control how we respond. And that can make all the difference.