#1069 Adam Kurkiewicz On How To Invest Like The Best Performing Endowment

— Endowments are permanent capital pools funded by gifts over decades, paying out 4–5% annually to support university missions while preserving real purchasing power for perpetuity.

— Washington University's portfolio strategy emphasizes concentrated positions with world-class managers rather than over-diversification, using generalists instead of specialists to calibrate opportunity costs across asset classes.

— The endowment prioritizes co-investment alongside trusted partners to validate conviction and access their best ideas, scaling positions when thesis alignment is strong.

— Bitcoin and crypto are evaluated through existing portfolio managers' expertise; the team holds a material position acquired early, views Bitcoin as long-term store of value, and invests in infrastructure, custodians, and gaming applications.

— Decision-making is driven by case study analysis and prepared-mind orientation—maintaining dry powder and deep knowledge of existing portfolio to capitalize on market dislocations like COVID-19.

— Long-term orientation balances permanent capital philosophy with market cycles; the team harvests gains strategically to reserve capital for high-conviction opportunities rather than riding all winners indefinitely.

— Institutional-grade concentration: Rather than passive index exposure, seek out fewer world-class managers aligned on performance rather than fees; validate partnership fit through rigorous case study due diligence before committing capital.

— Dry powder and prepared mind: Maintain 2–3 years of distributions in liquid reserves and medium-term assets so you can deploy opportunistically during dislocations without forced selling of core positions.

— Opportunity cost discipline: When a position appreciates significantly, periodically harvest gains to fund emerging opportunities with higher conviction rather than assuming all winners should ride indefinitely.