There is a article in FT.com about David Swensen, manager of Yale University endowment fund, speaking at the recent Yale commencement. Here is direct link. Some good quotes below.
“Investment management is a simple business,” he said. It came down to two principles. First, equities are best for the long run (as proved by many surveys). “With a portfolio like Yale’s, with a time horizon measured in centuries, everyone would come to the same conclusion: it’s far better to have equities in your portfolio than bonds or cash.” By equity, he means any asset where there is a potential upside that can be taken by the investor.
His second principle is simpler: “Diversification is important.”
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