Harvard's Big Bucks
In the Globe, Steven Syre asks, "How should Harvard spend its money?"
Apply the average annual investment return Harvard earned over the past 30 years to the decade ahead, and my compounding calculator says the endowment will grow to $133 billion. In 20 years, the same exercise comes up with an endowment of $506 billion. These are squirrelly numbers because they assume very strong investment returns while ignoring future distributions and fund-raising, but you get the idea.
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Should a school sitting on $75 billion or $100 billion in the future have any business charging students tuition at that point?