Do any of you know what a college endowment is?
Here is the definition from Investopedia:
Endowments represent money or other financial assets that are donated to universities or colleges and are meant to be invested to grow the principal and provide additional income for future investing and expenditures. Typically, endowment funds follow a fairly strict set of long-term guidelines dictating the asset allocation that will yield the targeted return without taking on too much risk.
Basically, it is a fund managed by a university that is funded usually by alumni and used for private investments. Sounds legit.. right?
Well, Harvard really fucked theirs up. Bad.
Typically, endowments are invested into index funds, which consistently have a slow yet profitable growth, especially once you account for compounding. But Harvard got cocky and tried to invest in… Sugar??? Well they lost $1.1 B.
The best part, event though the endowment fund managers came in well under the expected rate of return, they still earned themselves up to $13 million per year. How do I get that job?
Basically, you pick a stock, hope it works and and make bank.
Is college just a scam?
I never went to college, I am very glad I didn’t. I have heard dozens of experiences from young students who wish they could have done things differently. It seems to me that college has become less about education and more about winning the popularity contest in order to bait young students into the “college life” and earn their tuition money.
I watched a documentary on this topic called the Ivory Tower. It was really fascinating, I hope you want it. I recommend reading up on exactly how the college tuition and student load system works before you go balls deep into the college life.
But Wait, Is College Worth the Cost?
According to a New York Times report written in 2014, attending college is DEFINITELY worth the cost. The study reports that people with a college degree make more money. In fact, the data says hat a college degree has never been more valuable.
My advice, don’t go to college to find yourself. Go to college to pursue a career.