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Isn't that almost exactly what, say, the s&p 500 returns? [0] And you don't need a team of anyone to buy and hold that. [0] https://www.investopedia.com/ask/an
by savanaly 8y ago
Isn't that almost exactly what, say, the s&p 500 returns? [0] And you don't need a team of anyone to buy and hold that.
[0] https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp https://www.investopedia.com/ask/answers/042415/what-average...
- petermcneeley 8y ago"Adjusted for inflation, the historical average annual return is only around 7%. " from your link.
- dimva 8y agoThere's a 10% nominal return, but a 7% real return. Harvard beats this by 3% annually, which is huge!
- scrumbledober 8y agothe real test is how well Harvard's fund does in year where the s&p 500 is doing poorly.
- longerthoughts 8y agoNo, the real test is sustained performance over time in the form of an average. If the S&P 500 falls 10% in a given year, I can hold 100% cash, light 5% of it on fire, and outperform the S&P 500 - that doesn't make it a sound long term strategy.
- incognition 8y agoAre we also omitting the fact that it's a nonprofit and therefore has grossly better tax treatment?
- wheelerwj 8y agothats not how taxes work... I am not a lawyer/cpa but if I understand correctly, any investment income harvard receives would be taxed at the normal rate for that type of activity.