|
|
UW-RF Home > Public Affairs Home > This Month's News Releases Public AffairsBUSINESS CELEBRATION WEEK A SUCCESSBy Justine Benzen and Katie Bild There was a large turnout for a lecture by Executive in Residence David Swensen, who is a UW-RF alumnus and the manager of a $14 billion Yale University endowment fund that has generated a 16.1 percent annual return. He is also the author of two books on financial management. More than 300 people including students, staff and those in business careers were in attendance, according to Barbara Nemecek, dean of CBE. Swensen, a 1975 UW-RF graduate and the University's1996 distinguished alumnus, spoke on Oct. 25 about how he went to Yale University with no formal training as an investment manager. When he was given the job of managing Yale's portfolio, he explored other institutions and found that 50 percent of money was put in U.S. stocks, 40 percent in U.S bonds, and 10 percent was categorized as other. "The two most important aspects to having a successful approach to managing portfolios is to own assets that produce equity, and secondly diversify yourself and spread assets around to reduce risk," Swensen said. If you have these criteria, "you are taking a fundamental approach to managing portfolios," he said. He also pointed out that as investors, there are three categories to take into consideration. The first is to allocate assets and to diversify stocks with a variety of ratings. Secondly, consider market timing. "Market timing is motivated by fear and greed," Swensen said. "Behaviors occur when there are dramatic changes in the environment." An example of this is the stock market crash of 1929. The last category is security selection. It is "being able to understand the efficiency of the market," Swensen said. Afterward he signed his books, "Unconventional Success: A Fundamental Approach to Personal Investment," and "Pioneering Portfolio Management: An Unconvential Approach to Institutional Investment." -30-
Last updated:
Monday, 07-Nov-2005 14:01:37 CST
|
   |
NOV. 4, 2005--Internship and international study opportunity panels, presentations, an open house and a career service seminar hosted University of Wisconsin - River Falls College of Business and Economics contributed to a successful Celebration Week Oct. 24-29.