Yale’s Endowment Learns Hard Diversification Lesson

Ted

FYI: (Click On Article Title At Top Of Google Search)
Over the past decade, the performance of university endowments has lagged behind the U.S. stock market.
Regards,
Ted
https://www.google.com/search?ei=F_QPWq_6OMTQmwGJkomoAg&q=Barron's+Yale's++Endowment+Learns+Hard+Diversification+Lesson&oq=Barron's+Yale's++Endowment+Learns+Hard+Diversification+Lesson&gs_l=psy-ab.3...27107.30962.0.32889.7.7.0.0.0.0.94.632.7.7.0....0...1.1.64.psy-ab..0.0.0....0.7W4xr4ODG7o

MikeM2

**But Yale’s allocation to U.S. stocks is simply too low. And Swensen may need to acknowledge that the passive strategies he derides have stacked up well against endowments in the past 10 years.**
In Dr. Swenson's book he lays out a passive portfolio with Vanguard funds for the average investor(like me). Derides seems a little strong. The article didn't mention the portfolio's standard deviation relative to the SP500 or a 80/20 stock bond portfolio. Something else I find interesting is that Vanguard's Wellesley Income (40%dividend/value stock/60% income) has a 10 year record competitive with the SP500 if you consider that that the Admiral shares are 15 basis points and the 10 yrs STD deviation is 6.34.

JMHO,

Mike

bee

Connecting the David Swenson discussion dots:
https://mutualfundobserver.com/discuss/discussion/36708/conversation-with-david-swenson#latest

@MikeM2, using VWINX (VWENX) as a retirement distribution strategy is also another worthy attribute of the fund.

VWINX is the clear winner. Providing 25 years of inflation adjusted 4% annual distributions with a residual value over 89% greater than its beginning value

long-term-growing-income-open-end-mutual-fund-possible