<p>It’s worth noting that the only other private assemblage of tax-exempt wealth equivalent to Harvard’s – the Gates Foundation – made grants of over $2 billion in 2007, or roughly twice Harvard’s spending rate. The Gates Foundation is about the same size as the Harvard endowment – $37.5 billion vs. $41 billion. </p>
<p>The comparison is a little unfair in both directions, of course. The Gates Foundation intends to liquidate itself over the course of a generation or two. At the same time, it is much less diversified than Harvard – most of its wealth consists of Microsoft or Berkshire Hathaway stock, although it is certainly diversifying a a nice clip – and therefore a good deal riskier. But it is virtually assured of attracting more new contributions than Harvard over the next few years, thanks to Warren Buffet’s 10-year pledge. And in many respects it is not yet up to full speed.</p>
<p>As for the Allston project: A couple of years ago, Stuyvesant Town/Peter Cooper Village – 80 acres of land in mid-town Manhattan, with over a hundred buildings and over 25,000 residents – sold for $5.6 billion, or roughly two years of Harvard endowment growth net of contributions to the University’s operations. I don’t expect to see Harvard’s endowment shrink to the measly levels of, say, Yale’s anytime soon.</p>