00:00What propelled you to think that you should start your own firm after working for big firms?
00:05And did you have any money to start the firm with?
00:08I had something I really wanted to do, which is this idea for small stocks.
00:12One of my clients at the time was AT&T.
00:15At that time, this was before the divestiture.
00:18They were the biggest pension fund in the world.
00:21And they had 110 managers picking stocks, and none of them were investing in the stocks of smaller companies.
00:28So I said, if you want to help yourself out, why don't you create a small cap portfolio?
00:34And they did, and the idea took off.
00:37So you started Dimensional.
00:39You were living in Brooklyn, and you started in a brownstone.
00:43Right.
00:44So you moved the beds out, and you just were working there.
00:47Yeah.
00:48Did you have anybody to capitalize the company with any venture capitalists who said,
00:51it's a good idea, I'll give you some money to start?
00:54We had a little bit of outside money.
00:55Schroeder Capital Management, a UK firm, provide a little bit of money.
00:59We only raised enough just to get through all the registrations and find out if we had clients.
01:05Went to call for telephone lines to run the, I thought I need six telephone lines to do the portfolio
01:12management.
01:13They wouldn't give me the lines because they thought I was a bookie.
01:15Because in those days, they weren't prepared for a start-up firm in Brooklyn.
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