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...
"Asset allocation is the most important investment decision. How you divide your portfolio among stocks, bonds, and alternatives determines most of your long-term returns."
Asset allocation determines most of portfolio performance; security selection is secondary.
Read Full Analysis →"Diversification is the only free lunch in investing. True diversification means owning assets that behave differently from each other, not just owning more of the same thing."
Diversification is the only free lunch; spread risk across uncorrelated assets.
Read Full Analysis →"Alternative investments like private equity, venture capital, and real assets provide superior returns and diversification benefits. Don't limit yourself to traditional stocks and bonds."
Alternative investments (private equity, venture capital) provide superior returns and diversification.
Read Full Analysis →David Swensen has 3 key principles on risk management. The most important one is "Asset Allocation Primacy" — Asset allocation is the most important investment decision.
David Swensen applies risk management through several key principles including "Asset Allocation Primacy" and "True Diversification". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to risk management 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.
