Sunday, November 06, 2016

David Swensen on Successful Investing

From this New York Times feature on Yale's famed investment guru:

Beware hot funds
“More assets produce more fees, but they force managers to add more positions, not just Grade A ideas,”

Don't look back
“We were talking to a manager who just had capital taken away because the fund had a bad year. The investor said, ‘Your five-year numbers are not so good, so we are firing you.’ That sounds like the stupidest thing I ever heard.

”Who cares about the trailing numbers if the fundamentals of the portfolio are good?”


7.4%
Average annual return from a 60 percent stocks, 40 percent bonds portfolio over the 20 years ending last June

12.6%
Average annual return earned by Yale's endowment over the same period

1 comment:

diego78 said...

Truly a nice share about successful investing. Millions of people invest but not everyone succeeds mostly due to lack of knowledge and proper strategy. I too will be investing but will like to get suggestions from a wealth management group Las Vegas for that.