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...
"The cardinal rule of investing: buy only when the price is significantly below your conservative estimate of intrinsic value. This builds in protection against error."
Buy only at prices well below intrinsic value.
Read Full Analysis →"The stock market is a no-called-strike game. You don't have to swing at every pitch. Wait for the fat pitch — the opportunity that offers exceptional risk-reward."
Wait for exceptional risk-reward opportunities.
Read Full Analysis →"Never invest in anything you don't fully understand. Thorough research is the foundation of every sound investment decision."
Thorough research precedes every sound investment.
Read Full Analysis →David Swensen has 3 key principles on buying principles. The most important one is "Buy Below Intrinsic Value" — The cardinal rule of investing: buy only when the price is significantly below your conservative estimate of intrinsic value.
David Swensen applies buying principles through several key principles including "Buy Below Intrinsic Value" and "Wait for the Right Opportunity". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to buying principles 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.
