He is David Svencen, who died on May 5th, 20021year. Speaking of this name, many people may not know it. He is Zhang Lei's mentor and the first person to invest in Zhang Lei. He is called the God of Wealth of Yale University. As the chief investment officer of Yale University, he doubled the assets of the Yale Endowment Fund in 33 years. It is called "Yale model" by the industry. In Zhang Lei's words, "He was the first mentor who led me into the investment field. He taught me what trustee responsibility is, what long-term value investment is, and how to create an organization with a soul. "
Today we will learn how to invest from his life experience.
Learn from the winners of the Nobel Prize in Economics.
1980, David Svencen, 27, Ph.D., Yale University, went to Wall Street and made a good investment performance. Many articles on the internet have touched on this matter, but in fact, people should ask, why did he do it? Because he studied under James Tobin, the Nobel laureate in economics.
You may not know this man very well. His early research has developed into contemporary portfolio theory. He made an important contribution to the analysis of financial markets and related products and prices. He was born in 19 18. After 1950, he taught at Yale University most of the time, and served as the chairman of Yale Foundation from 1955 to 19 1 and 1964 to 1965. This is the intersection of life and our hero. 198 1 year, Tobin won the Nobel Prize in Economics for his portfolio theory. In layman's terms, this theory is "Don't put all your eggs in one basket". With such a teacher, David Svencen's investment ability can be imagined.
He took his investment to the extreme.
65438-0985 With Tobin's strong recommendation, David Svencen was appointed as the investment director of Yale Endowment Fund. At that time, the average annual net return rate of Yale Foundation was only about 6.5%. He and Yale students spent a lot of time evaluating various investment portfolios and considering different investment strategies. Svencen decided to put the portfolio theory into practice after communicating with Yale investment executives for many times.
At that time, Svencen held a radical view that institutional investors should reduce their investment in stocks and bonds and invest in alternative investments such as hedge funds, real estate and timber with a long-term perspective. He dispersed about 3/4 of the Yale Endowment Fund, which had originally invested in domestic stocks and bonds, into a series of other investment projects, including buying the controlling shares of the company, funds and hard assets such as real estate, timber, oil and gasoline. Later, the market performance was that the Dow Jones Industrial Average kept fluctuating at the bottom, but the prices of oil and wood rose sharply, which also confirmed David Svencen's judgment. Even when the Internet bubble burst in 2000, Svencen's investment performed well, which was mainly due to his massive hedging over the years. The average annual rate of return is about 13. 1%.
When you see this, will you think of equity investment? Zhang Lei's investment objectives are exactly the same.
However, to invest in these, you need to have a very deep understanding of the target and the market, and you must have super foresight to predict the market.
Completely changed the pattern of institutional investment.
Svencen, known as the "Yale model", has become the standard of many universities and foundations. In his book "Pioneering Portfolio Management", he introduced this "Yale Model" which almost reshaped the investment community. This book has now entered the required reading list of many business schools. You can learn more about this model through this book.
When Zhang Leigang founded Gaoling Capital, Svencen invested $20 million in Gaoling through Yale University. This investment has brought Yale a return of1300 million dollars in the past 12 years.
One of the essence of investment is investing in "people". When asked why he invested in Gaochun Capital, Svencen responded: "When you cooperate with the right people, good things will happen."
In the final analysis, long-term value investment is an investment in people.
I hope you can learn something from David Svencen's experience.
Thank you!