INVESTMENT: College Lesson

As the oldest existing corporation in the Western Hemisphere, Harvard University can teach many a sharp financial lesson to managers of industrial pension plans and other big investment funds. With the notable exception of John Hancock,* Harvard treasurers have usually invested the corporation's money wisely. Last week, in the Harvard Alumni Bulletin, Treasurer Paul Codman Cabot gave the first detailed explanation of the investment philosophy that has helped build Harvard's General Fund (endowment) to more than $250 million, biggest university fund in the U.S.

The history of Harvard investment follows the economic pattern of a developing America. Harvard grew up...