Yale’s Endowment Manager on the Stock Market
NPR had an interview with David Swensen, manager of the Yale Endowment:
Swensen manages Yale University’s endowment and has written a book on investing for average people. He has made billions of dollars for Yale. Over the past two decades, he averaged a 16 percent return every year. That makes him like the LeBron James or Tiger Woods of investing.
But even Swensen has taken some losses in the recession. Yale’s endowment has fallen in value by about 25 percent.
…Swensen says our instinct is to sell when stocks fall. If something is hurting, you want to make it stop and get away from it. But, he says, “in the investment world, you have to have the exact opposite instinct.”