Archived post

This is an archived post. Please click here to see the latest entries.

« Dormitory Discontinuity | Home | The Wright Years: A Sea of Additional Employees »


Don’t Blame the Endowment

The NYT summarizes the past decade’s investment story:

It was a decade that began with such promise. Stock markets in Europe and America ended the 1990s at record levels, and even bedraggled Japan was at a two-year high. “Dow 36,000” was on some best-seller lists.

Instead, it became a decade that richly earned the name “the zeros.” For the entire developed world, that was just about the decade’s total return.

The United States stock market lagged even that modest return. According to the MSCI indexes, which measure virtually all stock markets using consistent criteria, an investor in the American market who reinvested all dividends [emphasis added] — and who somehow avoided all taxes and transaction costs for the decade — would have ended 2009 with 12 percent fewer dollars than when the decade began. That is an annual return of negative 1.3 percent.

Over the same time period, Dartmouth’s endowment rose by an average of 5.1% each year, even after we had imprudently drawn out as much as 7% of its total value annually. Unlike the above-mentioned indices, we ended up the decade with 65.1% more dollars than we started with.

Endowment DartblogX.jpg

Today the College is in a financial crisis, to be sure, but not because an insufficient amount of money came in the door.

Best-of-Logo-2014_dartblog.gif

Featured posts

  • August 14, 2013
    Breaking: Of Crips and Bloods and Memories of Ghetto Parties
    History repeats itself, first as tragedy and then as farce, or sometimes it just repeats itself. From the New York Times on November 30, 1998: At Dartmouth College, white students at a ”ghetto party” dressed…
  • June 25, 2013
    Dean of the College Charlotte Johnson’s War on Students Part (2/2)
    Part 1, Part 2 Today’s post again recounts the events that befell the Freshman. However, the content of the Hanover Police department report reproduced in this space yesterday is supplemented by information from my own…
  • October 18, 2009
    When Love Beckoned in 52nd Street
    We were at San Francisco’s BIX last evening, enjoying prosecco, cheese, and a bit of music. A full year of inhabitation in Northern California has unraveled to me no decent venue for proper lounging, but…
  • October 9, 2009
    D Afraid of a Little Competish
    So our colleague and Dartblog writer Joe Asch informed me that the D has rejected our cunning advertising campaign. Uh-oh. The Dartmouth is widely known as a breeding ground for instant New York Times successes,…
  • September 4, 2009
    How Regents Should Reign
    As Dartmouth alumni proceed through the legal hoops necessary to defuse a Board-packing plan—which put in unhappy desuetude an historic 1891 Agreement between alumni and the College guaranteeing a half-democratically-elected Board of Trustees—it strikes one…
  • August 29, 2009
    Election Reform Study Committee
    If you are an alum of the College on the Hill, you may have received a number of e-mails of late beseeching your input for a new arm of the College’s Alumni Control Apparatus called…

Dartblog Specials

Subscribe by Email

Enter your email address:

Help, Pecuniarily

Please note

This website reflects the personal opinions of its authors. Any e-mails received may be published along with the full name of the sender. If you wish otherwise, please say so.

All content appearing at Dartblog.com should be presumed copyright 2004-2018 its respective bylined author unless otherwise noted or unless linked to original source.

Advertisement



admin

Calendar

April 2018
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

Search

Archives

Links