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...
"Markets are driven by fear and greed. The disciplined investor exploits these emotions rather than being controlled by them. Emotional control is the key competitive advantage."
Exploit market emotions rather than being controlled by them.
Read Full Analysis →"Understanding crowd psychology is essential. When everyone agrees, the opportunity has usually passed. The best time to act is when the crowd is most fearful or most confident."
Act when the crowd is at emotional extremes.
Read Full Analysis →"The best investments often feel uncomfortable because they go against popular opinion. If everyone loves a stock, it's probably overpriced. If everyone hates it, investigate."
Good investments often feel uncomfortable.
Read Full Analysis →David Swensen has 3 key principles on market psychology. The most important one is "Emotional Discipline in Markets" — Markets are driven by fear and greed.
David Swensen applies market psychology through several key principles including "Emotional Discipline in Markets" and "Crowd Behavior Awareness". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to market 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.
