David Swensen is the Chief Investment Officer at Yale University who takes charge of the Yale Endowment Fund. He has made an average return of 11.8% per annum over 10 years. I shall summarise his ideas from his book, “Unconventional Success: A Fundamental Approach to Personal Investment“. I could identify 3 main parts in the book and it should help you get a good idea on what his message is.

Asset allocation is key to consistent profits

It can be seen that his method is heavily centralised on Modern Portfolio Theory and his principal investment concept is that asset allocation is key to consistent profits. In essence, he believes a well portfolio should consist of the following asset classes and in the specific percentage. He called it a well-diversified, equity-oriented portfolio and they are also known as core asset classes. Quote: “Diversification demands that each asset class ...