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...
"Endowments have perpetual time horizons. This allows us to accept illiquidity and short-term volatility in exchange for higher long-term returns. Think in decades, not quarters."
Endowments have perpetual horizons; accept illiquidity for higher expected returns.
Read Full Analysis →"Market timing is extremely difficult and usually counterproductive. Stay fully invested according to your strategic allocation. Time in the market beats timing the market."
Market timing is extremely difficult and usually counterproductive; stay invested.
Read Full Analysis →"In a world obsessed with quarterly results, patience is the ultimate competitive advantage. Great investments often take years to play out fully."
Patience is the ultimate competitive advantage.
Read Full Analysis →David Swensen has 3 key principles on long-term investing. The most important one is "Long-Term Horizon" — Endowments have perpetual time horizons.
David Swensen applies long-term investing through several key principles including "Long-Term Horizon" and "Avoid Market Timing". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to long-term investing 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.
