1. Even Endowments Struggle: A Lesson from the Ivy League

This past weekend, while driving home from my Sunday morning hockey game (yes, I’m that kind of finance geek), I tuned in to one of my favorite programs—the Ric Edelman Financial Show on WJR. Ric opened with a simple but powerful question: “How do you feel your investments have performed this past year?”

He quickly pointed out that feelings aren’t facts—and performance means little without a relevant benchmark. He then walked through the recent returns of some of the country’s most prestigious university endowment funds. While we often imagine these institutions as investment powerhouses, even they posted underwhelming results.

Here’s a quick snapshot of their 12-month performance ending September 30, 2016:

• Yale: +3.4%

• Princeton: +0.8%

• Stanford: -0.4%

• University of Pennsylvania: -1.4%

• University of Virginia: -1.4%

• University of Washington: -1.6%

• University of Iowa: -1.75%

• Harvard: -2%

• UNC: -2%

• University of Colorado: -2.5%

• Ohio State & University of California: -3.4%

Even the top-performing endowment (Yale) gained just over 3%, and the worst fell a little more than 3%. The spread? Less than 7% from top to bottom. Not exactly eye-popping—and yet, no one’s getting fired over it.

2. Benchmarking: A Reality Check for Investors

Ric’s insight was clear: without a benchmark, you’re flying blind. You might feel good—or bad—about your portfolio’s performance, but unless you’re comparing it to something meaningful (and appropriate), you don’t really know how you’re doing.

For individual investors, choosing the right benchmark is just as critical. Your cousin’s tech-heavy stock picks or that “hot” ETF your coworker mentioned at lunch aren’t relevant comparisons unless they align with your investment strategy and risk tolerance. Instead, your performance should be measured against something that mirrors your goals and the composition of your portfolio.

3. The Long View Wins: Don’t Sweat the One-Year Blips

The second key takeaway? Don’t put too much weight on a single year’s returns. The smartest investors—like those managing massive endowment funds—are playing the long game. A single 12-month stretch rarely tells the full story.

This is especially true in a media environment that thrives on volatility. Every market swing becomes breaking news, and financial service firms often capitalize on fear and greed to push investors into reactive decisions.

Our advice at Gainplan? Choose a risk-adjusted strategy that aligns with your long-term goals, commit to it, and stay the course. One year doesn’t define your financial future—sticking to a disciplined plan does.

Just my two cents. And apparently, Ric Edelman agrees.

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