"Harvard officials said they were planning for a decline of 30% in value for the year. Harvard said the school's worst single-year investment loss was 12.2% in 1974, when the endowment stood at less than $1 billion and its funds contributed far less to the school's operations."
Here is the rest of the Wall Street Journal article.
Liquidity matters! When I read this article, I realized that Harvard made investments that were profitable, but which couldn't be sold when they started to lose momentum. This is why I try to concentrate my trading on futures instruments that are liquid. If you can't get rid of it, you can't turn paper profits into real ones! "Honey, Junior's tuition is going to go up!"
