Not sure how me not being smart is relevant to the discussion. I would say you are not very polite, however that still doesn't add to the discussion here.
Top (and rich) universities, like Harvard, MIT, etc, have an endowment which invests donations (and pretty much most of their money), in companies and funds, which would not be allowed under Chilean law.
Additionally, I would argue the idea is not to re-invest in the institution, but to invest the university money in a way that is financially sustainable and in line with the university goals. Spending all the money on infrastructure might not be the best way to achieve that.
The important thing is that even though universities are allowed to invest in infrastructure, they are not allowed to re-invest any of their donations (donations law: http://www.cned.cl/public/secciones/seccionsnac/normativa/Le...).
Top (and rich) universities, like Harvard, MIT, etc, have an endowment which invests donations (and pretty much most of their money), in companies and funds, which would not be allowed under Chilean law.
Additionally, I would argue the idea is not to re-invest in the institution, but to invest the university money in a way that is financially sustainable and in line with the university goals. Spending all the money on infrastructure might not be the best way to achieve that.