in the current PAW about Princeton's endowment (November 20) is slightly
misleading. While Harvard's, Yale's and the University of Texas' endowments
are larger than Princeton's, Princeton's endowment per student far outstrips
the others. With 19,000 students +/-, Harvard has about $1,000,000 per
student, the closest to Princeton's $1,200,000 per student. Yale's is
about $800,000; Texas' about half of that.
Princeton's endowment is one reason that the Trustees were able to abolish
student loans in favor of scholarships: an extra-ordinary act of stewardship.
Cuthbert R. Train '64
Northeast Harbor, Maine
After reading the article "Princeton's
Endowment Outperforms Market" (February 27) 1 question the reason
for comparing the entire endowment to the U.S. stock market. Certainly
the huge endowment fund is not totally invested in U.S. stocks. And with
no tax liability it has freedom to shift assets out of U.S. stocks if
they are not the most attractive investment alternative.
Perhaps a comparison of PRINCO's paltry +2.4% return in fiscal 2001 should
be compared to the +10. 3% return realized on top quality ten year U.S.
Treasury bonds over the same time period. Even the +8.1% return on a constant
maturity ten year Treasury index is more than three times the reported