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...
"Over the long term, equities have outperformed bonds and cash. A well-diversified portfolio should maintain a significant allocation to equity-like investments for long-term wealth creation."
Equities offer superior long-term returns; overweight stocks for multi-decade horizons.
Read Full Analysis →"When markets move, rebalance back to target allocations. This forces you to buy low and sell high systematically. Rebalancing is contrarian by nature."
Rebalance systematically back to target allocations to maintain risk-return profile.
Read Full Analysis →"The greatest enemy of the investor is himself. Fear, greed, regret, and pride cause more losses than any economic event. Master your emotions to master the market."
Master your emotions to master the market.
Read Full Analysis →David Swensen has 3 key principles on investment psychology. The most important one is "Equity Bias" — Over the long term, equities have outperformed bonds and cash.
David Swensen applies investment psychology through several key principles including "Equity Bias" and "Rebalancing Discipline". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to investment psychology 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.
