Another asset allocation lecture, we are treated with an interesting talk from David Swensen, Chief Investment Officer of the Yale University endowment fund. Swensen talks about three aspects of portfolio management and investment strategy: stock selection, market timing, and of course asset allocation. He notes that while stock selection has its place, along with market timing, in total it is a minus sum game and is best applied to inefficient markets. Meanwhile he maintains that asset allocation and diversification are the keys, as is a focus on equity-oriented investment.
David Swensen is the chief investment officer of Yale University, where he has produced stunning results in managing portfolios over 25 years. In this lecture, he talks about managing a portfolio for individual investors and stresses on the importance of diversification and equity-orientation.
Finance Documentaries: http://www.financedocumentaries.com/2011/07/david-swensen-on-asset-allocation.html