2min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP444: The Changing World of Endowments and ESG Policies w/ Ted Seides

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

What Are Some of the Biggest Misconceptions About Endowments?

The purpose of endowments is to balance the spending for current generations of scholars with many, many future generations. There's elegant mathematical formulas to determine spending rates that would allow you to do that. If you spend too much, and you start eating to principle relative to your long term return expectations, you won't have the same support later on.

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