Investing for Growth in 1975

Abstract

The one absolute truth in investing is that long-range success comes only from rigorous pursuit of disciplines designed to neutralize emotional pressures. These disciplines differ because investors have different strengths and weaknesses, but all depend upon self-discipline, defining objectives, understanding the reasons underpinning the chosen strategy, recognizing the inevitable problems, and developing the strength to stay the course—and being sensitive to fundamental changes that could make the investor's chosen strategy obsolete. Endowments, despite the many compelling reasons for investing for maximum long-term return, at one time typically put too much emphasis on avoiding losses and on maximizing current returns, yielding results that would be recognized as unacceptable if performance had been accurately measured. The author of this opinion piece, written in the 1970s, led an investment office to acknowledged leadership among growth investors during the second half of the 20th century. His 1972 report on endowment investments for The Ford Foundation had a great impact on changes in endowment investment management.