$300 Million Gift

[phuriku]

<p>From Zimmer:</p>

<p>

I am very pleased to announce a remarkable gift of $300 million to the University of Chicago for the benefit of the Graduate School of Business by University Trustee and alumnus David G. Booth, MBA ’71, his wife Suzanne Booth, and their children, Erin and Chandler Booth. This is the largest donation in the University’s history and the largest gift ever in support of any business school. In recognition of the Booth family’s extraordinary generosity, the Board of Trustees has voted unanimously to name the school the University of Chicago Booth School of Business.</p>

<p>This gift from the Booth family is a resounding endorsement of the University’s commitment to groundbreaking theory and rigorous examination of empirical data, which captivated Mr. Booth as a student and guided his career. In making the gift, he noted that his successful investment firm, Dimensional Fund Advisers, was built on principles he learned at the University and particularly from Professor Eugene Fama.</p>

<p>Dean Edward Snyder has announced that the school will use the gift to support several new initiatives, including aggressively attracting and retaining outstanding faculty. Other uses being considered include developing new faculty groups in academic areas not normally associated with business schools, expanding existing research centers, and launching ambitious programs to better leverage the school’s intellectual capital, including programs that extend its international presence.</p>

<p>Mr. Booth founded Dimensional Fund Advisers in 1981 with classmate Rex Sinquefield, MBA ’72. His deep commitment to the University of Chicago has been long-standing, including his service on the University Board of Trustees from 2002 to the present, and on the GSB Council from 1999 to the present. He earlier gave the University $10 million to help fund construction of the Charles M. Harper Center. </p>

<p>Mr. Booth’s success and his decision to make such a significant investment in the University are a testament to the power of the ideas developed by University of Chicago faculty, students, and alumni. I want to express my appreciation to the Booth family for their profound commitment to the ideals of the University and their unparalleled generosity, which will ensure that the University of Chicago Booth School of Business remains one of the leading schools in the world.

</p>

<p>This is a rather interesting development. I was shocked at the renaming of the GSB.</p>

[uchicagoalum]

<p>This name is crappy. They could save a lot of money by sticking with the Chicago GSB moniker and just changing it to the Chicago Graduate School of Booth.</p>

[Bamboozler]

<p>I wish this had gone to the undergrads instead… haha.</p>

[uchicagoalum]

<p>In effect this does help other parts of the University. Since less discretionary money is needed to cover the costs of the GSB, it can be spent elsewhere. Indeed, I would not be surprised if the trustees effectively cut the long term working budget of the GSB by a comiserate amount. </p>

<p>Hopefullly, as noted in the President’s letter, they will hire more faculty working in interdisciplinary areas of business that can then teach across the school broadly (e.g. organization theory, psychology, statistics, sociology).</p>

[1990Dad]

<p>Obama elected
$300 million gift</p>

<p>Not a bad week at the U of C.</p>

[dsultemeier]

<p>Here is the announcement from the Philanthropy News Digest with some interesting information about a professor that inspired Mr. Booth. </p>

<p>The University of Chicago Graduate School of Business ( [The</a> University of Chicago Booth School of Business (formerly Chicago GSB) - Business School, Full-time, Part-time, Executive MBA Programs](<a href=“http://www.chicagogsb.edu/]The”>http://www.chicagogsb.edu/) ) has announced a $300 million gift from alumnus David Booth and his family, the largest gift ever to the university and the largest to any business school in the world.</p>

<p>The gift, which will take the form of an up-front payment, a regular income stream, and equity interest, will enable the renamed University of Chicago Booth School of Business to aggressively recruit and retain top faculty. Other uses under consideration include developing new faculty groups in academic areas not normally associated with business schools, expanding existing research centers, and launching programs to better leverage the school’s intellectual capital. The gift may also be used to support expansion of the school’s international presence beyond its campuses in London and Singapore.</p>

<p>Booth, who received an MBA from the school in 1971, based the investment philosophy of his company, Dimensional Fund Advisors, on the efficient market hypothesis, a theory established by his former Chicago professor Eugene Fama, who posited that equity investors should not be able to beat the market since there is no way for them to know something about a stock that is not al- ready reflected in its price. Instead, market efficiency suggests that investors are better off buying and holding widely diversified portfolios – the basic thinking behind index funds.</p>

<p>“I remember Professor Fama standing up the first day of class and saying ‘This is the most practical course you will ever take,’ and it turned out to be true,” said Booth. “We built Dimensional Fund Advisors around his set of ideas. I am hoping that others will join me in giving back to this amazing business school.”</p>

<p>“Alumnus David Booth Gives $300 Million to University of Chicago Business School.” University of Chicago Graduate School of Busi- ness Press Release 11/06/08.</p>

<p>[PND</a> - News - University of Chicago Business School Receives $300 Million Gift From Alumnus](<a href=“http://fconline.foundationcenter.org/pnd/15015764/story]PND”>http://fconline.foundationcenter.org/pnd/15015764/story)</p>