As a general rule, Harvard targets an annual endowment payout rate of 5.0 to 5.5% of market value. In 2019, the payout rate was 5.1% compared to the 5.2% payout rate in 2018.

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   Brian C. Keegan (bkeegan@hci.social)'s status on Friday, 24-Nov-2023 01:31:24 JST Brian C. Keegan

   It’s easy to dunk on midlife Elon for lighting $44 billion on fire to own the libs.

   But it’s hard to fathom the enormity of this destruction of value.

   Harvard University has attracted significant and deserved criticism about its embarrassingly large endowment.

   In 2019, Harvard’s endowment was $40 billion.

   The income from this pile of money reliably pays out 5% per year, or $1.8 billion.

   Just remember: “A 44 billion endowment could indefinitely pay for $2 billion of stuff per year.”

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