Thursday, September 27, 2007

Investing Advice from David Swensen

The Wall Street Journal gave Yale's David Swensen an 'A+' today. He's managed Yale's top performing endowment over the past 20 years and the WSJ reported that his 28% return (for the fiscal year ending June 30th) again topped all other $1billion+ endowments that have reported their results thus far.

Swensen is known for his pioneering use of alternative investments, that is, alternatives to traditional stocks and bonds, such as commodities, private equity, and hedge funds. That's why it's so notable that his advice to us individual investors is to invest in index funds.

Fortunately for us, Swensen doesn't seem to be motivated mainly by money (he made $1.7 million last year, a small fraction of what he could make at a hedge fund) so he's written a book for us little guys, Unconventional Success, in which he lays out his investment recommendations. For more of what he recommends, check out this post from last year about his interview with NPR last year.

No comments: