How can we apply the same emergency measures that Harvard and other universities are using to navigate a financial crisis? Also, how universities invest their endowments and what their performance has been. Topics covered include: What has led to the financial crisis at Harvard What actions has the university taken How do endowments invest and spend their funds How endowments maintain intergenerational equity How we can apply the principles universities use in our own … [Read more...]
204: Why Are Investment Returns So Low?
How low real interest rates contribute to low returns for stocks and other risk assets. How real interest rates are determined. Photo by Markus Spiske In this episode you’ll learn: How global stocks and bonds have performed historically.How real interest rates are predictive of asset class returns.How real interest rates are determined.Why low real rates suggest asset class returns will continue to be low. Show Notes NACUBO-Commonfund Study of Endowments Credit Suisse … [Read more...]
180: Can You Outperform Harvard’s Endowment?
Why have college endowments underperformed a simple three fund Vanguard portfolio? Should you mirror a simple two or three fund portfolio or invest more like an endowment with multiple asset classes? Photo by Bill Badzo In this episode you’ll learn: How have college endowments underperformed a simple three Vanguard fund portfolio.What's the difference between time weighted and dollar weighted returns.Why are college endowments shifting more of their portfolios to alternative … [Read more...]
