David Frederick Swensen (January 26, 1954 – May 5, 2021) was an American investor and the chief investment officer at Yale University from 1985 until his death. He transformed Yale's endowment from $1 billion to over $31 billion, achieving an average annual return of 13.7% over his tenure. Swensen pioneered the "Yale Model" of institutional investing, which emphasizes diversification across...
"Invest in businesses with durable competitive advantages, strong cash flows, and management integrity. Quality businesses compound wealth over time and reduce downside risk."
Quality businesses compound wealth and reduce risk.
Read Full Analysis →"Before investing, identify the moat — the sustainable competitive advantage that protects the business from competitors. No moat means no long-term edge."
Identify sustainable competitive moats before investing.
Read Full Analysis →"Not all earnings are equal. Look for recurring, cash-backed earnings rather than accounting profits. High-quality earnings are predictable, sustainable, and convertible to free cash flow."
Evaluate earnings quality, not just quantity.
Read Full Analysis →David Swensen has 3 key principles on business quality. The most important one is "Quality Business Criteria" — Invest in businesses with durable competitive advantages, strong cash flows, and management integrity.
David Swensen applies business quality through several key principles including "Quality Business Criteria" and "Business Moat Assessment". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to business quality is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, David Swensen provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
