Archive for the ‘decision process’ Category
Quotes of David Swensen from his Financial Times interview
Posted by: Michael Zhuang on: November 4, 2009
On his anticipation of the crisis We were absolutely aware of potential issues. And that was months before Bear Stearns. That said, we weren’t prepared for the magnitude of the crisis, or its duration.
David Swensen quote of the month
Posted by: Michael Zhuang on: August 21, 2009
Investment success requires sticking with positions made uncomfortable by the variance with popular opinion. Casual commitments invite casual reversal, exposing portfolio managers to the damaging whipsaw of buying high and selling low. Only with confidence created by a strong decision-marking process can investors sell mania-induced excess and buy despair-driven value.
David Swensen quote of the month
Posted by: Michael Zhuang on: August 10, 2009
A rich understanding of human psychology, a reasonable appreciation of financial theory, a deep awareness of history, and a broad exposure to current events all contribute to development of well-informed portfolio strategies.
What (not) to learn from Harvard and Yale endowments’ investment approach
Posted by: Michael Zhuang on: March 20, 2009
University endowments are important institutions. They play a critical role in maintaining the academic excellence of the universities that rely heavily on their income. Recently, these endowments have drawn much attention because of their superior investment returns compared to other institution investors, such as investment banks and insurance companies. There is much diversity among university [...]
David Swensen’s Fox News interview
Posted by: Michael Zhuang on: January 7, 2009
This is based on an interview David Swensen done on Fox News Network. 1. Have a strong decision-marking process Investing success requires sticking with decisions made uncomfortable by the variance of opinions. In his own words: Think carefully how it is that you are gonna allocate your assets and stick with it. Too many individuals [...]
Author
Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm applying David Swensen's insights for clients. He is also a regular contributor to Morningstar Advisor. To use his wealth management services, schedule a discovery meeting (phone call) with him.
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