Invest like Harvard: The Advantages of Direct Real Estate Investing

May 11, 2016

ARTICLES, Banking & Finance

There are plenty of pundits who offer advice on how to “invest like the pros”. However, investors who are looking to enhance the performance of their investment portfolios probably won’t find a better investment model than the one used by the $37.6 billion endowment for Harvard University.  The methodology behind HMC’s success is the application of what is known as Modern Portfolio Theory. Modern Portfolio Theory is a theory of finance that seeks to maximize portfolio returns by carefully allocating capital across multiple asset classes. Among those asset classes, Modern Portfolio Theory calls for 10% to 20% of a well-diversified portfolio to be allocated into hard real estate assets. Historical results show that strategy to be effective in posting above-market returns in both good and poor market conditions.  Author:  Ian Formigle.  Source:  CrowdStreetLearn more…

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