📖David Swensen
Core Investment Philosophy
A clear philosophy anchors you in turbulent times.
A clear investment philosophy provides an anchor in turbulent times. Know what you believe, why you believe it, and stick to it when tested.
🏠 Everyday Analogy
📖 Core Interpretation
David Swensen sees markets as cyclical rather than linear. Understanding cycle position improves risk-taking decisions more than trying to call exact tops and bottoms.
💎 Key Insight：Conviction based on logic survives market storms.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Ignoring cycles repeats the same mistakes: excessive optimism at peaks and excessive pessimism near troughs. Context matters for position sizing.
🎯 How to Practice
Monitor credit, valuation, earnings, and sentiment signals; reduce aggressiveness in euphoric phases and preserve flexibility in fearful phases.
⚠️ Common Pitfalls
Treating short rebounds as full cycle turns
Extrapolating peak conditions indefinitely
Becoming maximally defensive near valuation troughs
📚 Case Studies
1
Yale Endowment in Global Financial Crisis (2008)
Swensen’s diversified portfolio with alternatives, real assets, and bonds limited losses versus equity-heavy funds during the 2008 crash.
✨ Outcome：Endowment declined less than many peers and recovered strongly, reinforcing the value of true diversification.
2
Dot-Com Bust and Yale’s Limited Tech Exposure (2000)
During the tech bubble, Swensen avoided concentrated tech bets, emphasizing diversification across asset classes and valuation discipline.
✨ Outcome：Yale’s endowment sidestepped severe losses when the bubble burst, outperforming many tech-heavy investors over the period.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →