The Art of Asset Allocation, with David Salem – [Invest Like the Best, EP.38]

My guest this week is David Salem. David was the founding president and CIO for The Investment Fund for Foundations, which served 800 endowed charities under David’s 18-year tenure. He’s now the CIO of the Windhorse Group, which focuses on long-term, value-oriented investing.

This conversation wanders into and explores many different areas of investing and life. The theme is how to think about asset allocation and investing holistically–from first principles–but we talk a lot about motivation, incentives, human behavior, and the fear of missing out as key variables in money management.

We discuss the history of the Yale and Harvard endowment models and how their success has affected the asset management world for better or worse.

I also can’t stop thinking about David’s “Mt. Everest” question, which we explore early in our conversation. I’d love to hear your answers to that question, so email me or message me with your thoughts.

Books Referenced

Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment

Into Thin Air: A Personal Account of the Mt. Everest Disaster

The Path Between the Seas: The Creation of the Panama Canal

Triumph of the Optimists: 101 Years of Global Investment Returns

Devil Take the Hindmost: A History of Financial Speculation

Capital Returns: Investing Through the Capital Cycle: A Money Manager’s Reports 2002-15

Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

 

Links Referenced

Barrons Review of ‘Pioneering Portfolio Management’

Memos from Howard Marks

Former Harvard Money Whiz Jack Meyer Tries to Regain His Edge (WSJ)

Economic and Portfolio Strategy (Peter Bernstein)

Yale Endowment Reports