CRSP’s origins date back to the 1960s. Its initial goal was to build a database of historical stock prices. This is harder than it might seem. Before trading was computerized, stock prices were maintained on paper. And when stocks split or companies merged, that added to the complexity.

Despite this seemingly dull mandate, CRSP has played an important role in the development of modern finance over the years. Most notably, the efficient market hypothesis and the capital asset pricing model were both made possible by CRSP data. And today, many of the world’s largest index funds, including Vanguard’s Total Stock Market Fund, are built on CRSP indexes. Endowment Lessons https://humbledollar.com/2026/02/endowment-lessons/

This article by Adam M. Grossman uses the University of Chicago’s financial struggles as a cautionary tale for individual investors.

Key Lessons for Individual Investors

• Spending: Avoid “Keeping Up with the Joneses”
  • The university invested heavily in new buildings and programs to maintain its “eminence” without securing corresponding revenue.
  • Takeaway: Financial success depends on income exceeding expenses. Operating costs of new assets (like large homes or complex projects) must be planned for in advance.
• Saving: Beware of Recency Bias
  • During a 15-year market boom, the university ramped up debt rather than stockpiling resources.
  • Takeaway: Investors often falsely assume current trends will continue forever. Use periods of market strength to re-balance portfolios and manage risk rather than increasing lifestyle or debt commitments.
• Investing: Complexity vs. Simplicity
  • Performance: UChicago’s endowment returned 6.7% annually over 10 years, trailing a simple Vanguard Balanced Index Fund (VBIAX), which returned 8.2%.
  • Liquidity: The university locked over 60% of its funds into illiquid assets like private equity and real estate, making it difficult to cover cash flow needs.
  • Takeaway: High-fee, complex, and illiquid investments often under-perform simple index funds. If elite institutions with dedicated investment offices “are having second thoughts” about private equity, the message for individual investors seems clear.

This summary was produced by Gemini AI and edited by yours truly.

Here’s a link to an article on the sale of CRSP. Morningstar Completes Acquisition of CRSP and Extends Relationship with Vanguard https://newsroom.morningstar.com/news/news-details/2026/Morningstar-Completes-Acquisition-of-CRSP-and-Extends-Relationship-with-Vanguard/default.aspx