<p>The major difference between Yale’s endowment and us mere mortals is that Yale’s endowment has a very long time horizon (perpetuity). Therefore, Swensen can take on a lot of “liquidity risk” in energy and timber investments which will deliver a higher return precisely because Yale can be so patient with them.</p>
<p>Both of Swensen’s books are excellent by the way. "Pioneering Portfolio Management is geared for the professional whereas the recently released “Unconventional Success” is for the individual investor.</p>