Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
David Swensen, Yale's Chief Investment Officer and manager of the University's endowment, discusses the tactics and tools that Yale and other endowments use to create long-term, positive investment returns. He emphasizes the importance of asset allocation and diversification and the limited effects of market timing and security selection. Also, the extraordinary returns of hedge funds, one of the more recent phenomena of portfolio management, should be looked at closely, with an eye for survivorship and back-fill biases.
00:00 - Chapter 1. Introduction: Changing Institutional Portfolio Management 03:59 - Chapter 2. Asset Allocation: The Power of Diversification 16:44 - Chapter 3. Balancing the Equity Bias into Sensible Diversification 20:48 - Chapter 4. The Emotional Pitfalls of Market Timing 32:58 - Chapter 5. Survivorship and Backfill Biases in Security Selection 43:17 - Chapter 6. Finding Value Investing Opportunities as an Active Manager 49:02 - Chapter 7. Yale's Portfolio and Results 54:48 - Chapter 8. Questions on New Investments, Remaining Bullish, and Time Horizons