3 ms·
the real test is how well Harvard's fund does in year where the s&p 500 is doing poorly.
by scrumbledober 8y ago
the 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.