The exclusion of Stanford University endowment investment in securities of corporations that have assets within the Republic of South Africa is examined, and a financial cost and benefit analysis of the situation is presented. The study indicates that if divestment were implemented Stanford would be required to sell approximately $125 million in endowment assets, including the securities of 59 corporations in 21 different industries. Divestment would mean eliminating those company's securities that the University's investment managers believe are the most lucrative. It is shown that the portion of annual dividends originating from assets within South Africa is estimated at $25,000 compared to a total dividend return in 1976 of $8,900,000. Over 99 percent of the earnings were found to be unrelated to the issue of South Africa but would be eliminated from Stanford's return by divestment. It is also suggested that excluding investments in companies on other than financial criteria would jeopardize philanthropic contributions from these companies. Appended are a list of the top 50 Standard and Poor's 500 stocks by market value, the market value of Stanford's investments in the securities of companies with assets in South Africa, a summary of the impact of exclusion by industry fields, and computation of transaction costs. (Author/SF)