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...
"Draw insights from multiple disciplines — psychology, history, mathematics, and science — to build a lattice of mental models for better investment decisions."
Use insights from multiple disciplines for better decisions.
Read Full Analysis →"Think in probabilities, not certainties. Every investment has a range of possible outcomes. Weight your decisions by the expected value of each scenario."
Think in probabilities, not certainties.
Read Full Analysis →"Instead of asking how to succeed, ask how to avoid failure. Inverting problems often reveals insights that forward thinking misses."
Invert problems to find insights forward thinking misses.
Read Full Analysis →David Swensen has 3 key principles on mental models. The most important one is "Multidisciplinary Thinking" — Draw insights from multiple disciplines — psychology, history, mathematics, and science — to build a lattice of mental models for better investmen...
David Swensen applies mental models through several key principles including "Multidisciplinary Thinking" and "Probabilistic Thinking". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to mental models 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.
