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...
"In efficient markets, passive investing wins. In less efficient markets like private equity and venture capital, manager selection is crucial. Find the best managers and stick with them."
In efficient markets use passive; in inefficient markets, active management can add value.
Read Full Analysis →"The ideal investment is a high-quality business purchased at a fair price. Quality compounds wealth; fair prices protect capital."
Seek quality businesses at fair prices.
Read Full Analysis →"Never invest in a business you cannot explain in simple terms. If you can't describe why a company is valuable, you don't understand it well enough to own it."
Only invest in what you can explain simply.
Read Full Analysis →David Swensen has 3 key principles on stock picking. The most important one is "Manager Selection Matters" — In efficient markets, passive investing wins.
David Swensen applies stock picking through several key principles including "Manager Selection Matters" and "Quality at a Fair Price". These principles guide practical investment decisions and have been tested across decades of market cycles.
David Swensen's approach to stock picking 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.
