Keep investing simple
Friday 25 April 2008
David F. Swensen manages investments for the $22.5 billion endowment at Yale.
Picture by Alan S. Orling for The New York Times
I have mentioned David F. Swensen in my blog before. He is one of these interesting personalities, along with Warren Buffett who have an uncanny knack of allocating capital with optimal returns over time. Wonderful if you could persude these guys to look after your money! However more likely instead as an investor you will end up with one of the thousands of asset managers attempting to emulate Swenson’s success. Yet many investors think they have found the next Buffett or Swensen or at least thats what the investment managers tell them!
What is interesting is what Buffet and Swensen say about Joe Average investor...by the way that's you if you are reading this...and you are not alone as there are another 99% or so of you all in the same boat...which means you need a methodology when investing your capital.
What does Swenson say? What methodology can you learn from him? In an article in The New York Times on February 17, 2008 entitled “Keep It Simple, Says Yale’s Top Investor” By GERALDINE FABRIKANT….
“What should an individual investor do? Don’t try anything fancy. Stick to a simple diversified portfolio, keep your costs down and rebalance periodically to keep your asset allocations in line with your long-term goals.
For most people, he recommends a very basic approach: use index funds, exchange-traded funds and other low-cost instruments, and stick to your long-term asset allocation — even when the markets are in tumult.”
Our point is that we believe exactly what Swenson has said. It is our view such a philosophy and methodology is the route to a successful investment experience over time.
Categories: Asset Class Management, Philosophy
posted by Murray Round Wealth Management @ 16:39,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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