Yale Model of Investing
David Swensen was pretty revolutionary in his methods for investing the Yale Endowment fund (it’s worth noting this great Fortune article on the Harvard/Yale Investment rivalry), earning higher returns than the S&P. Recently his portfolio, like many others, has taken a hit. I think it’s too quick to judge his philosophy and whether it works. Personally, I think it will/does as his approach makes sense.
Read Pioneering Portfolio Management and you see very quickly that his approach calls for constant thinking and retesting of assumptions and changing of allocations
Actually, shouldn’t our approach to life follow this theory?
Tags: david swensen, finance, investing, money