23 Jan Book Review — “Unconventional Success — A Fundamental Approach to Personal Investment” by David Swensen. Investors have never had it. NPR coverage of Unconventional Success: A Fundamental Approach To Personal Investment by David F. Swensen. News, author interviews, critics’ picks and. 2 Mar David Swensen, manager of the Yale Endowment, recommended this portfolio in his book “Unconventional Success”. We backtest the portfolio.

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I am more interested in the token economy than the “core asset classes” he suggests, also his critique on mutual funds was not interesting to me because I do not plan to invest there.

Similarly, if one anticipates inheriting a substantial sum in bonds, that should be considered as part of the asset mix of the portfolio. Overall, “Unconventional Success” is a tough book to get through, but in the end it is a worthwhile read. Swensen offers incontrovertible evidence that the for-profit mutual-fund industry consistently fails the average investor.

Jan 31, Chris rated it liked it Shelves: Couple that sswensen the difficulty of doing nothing, a counter-intuitive approach to investing, and we are primed to make more decisions than we should. Aug 14, Nick rated it it was ok Shelves: Other books in this category worth a read are:.

unconventipnal What I remember from this book is: From excessive management fees to the frequent “churning” of portfolios, the relentless pursuit of profits by mutual-fund management companies harms individual clients. As an alternative, he proposes an investment strategy based on a siccess towards equities, asset allocation across a small number of asset classes with frequent rebalancing, and passive investment through index funds and rebalancing against recent market performance thereby gaining reduced management fees and avoiding market timing and security selection.


David Swensen’s portfolio (from Unconventional Success)

This post will use an intermediate treasury fund as the vehicle for the bond allocation. The accompanying table provides returns for these portfolios. Chasing Performance Do not chase performance. The charts successs click images to enlarge show portfolio allocations.

I’m also not sure the hundreds of pages of criticism aimed at the mutual fund industry are very helpful, though unconventioonal is something to be said for pounding the point home given Swensen’s emphasis on being committed to one’s investment beliefs in order to generate strong returns. This is primarily a good reminder that one cannot blindly trust that one is being sold what one is promised this is worrisome for the lazy investor who will follow Swensen’s unconveentional to use passively managed funds; care must be still be taken.

Note that returns for portfolios holding admiral shares would produce a return enhancement of approximately 0. Maybe the guy got amazing returns with Yale’s endowment, but his book is boring and not that useful.

Read this as you begin or continue ewensen journey as an investor. That said, I appreciate the rigorous academic work here. Return to Book Page.

Unconventional Success: A Fundamental Approach to Personal Investment by David F. Swensen

Keep in mind that past performance does not forecast future performance. One of the most interesting facets is a chapter entitled “Winning the Active Management Game”, which does nothing but provide a case-in-point example of a fund management company doing it “the right way”.

Further, much of the really important detail is often obscured by the fine print of legal disclosures. As the money under their management increases, they earn far more from the base fees than from any performance-based bonuses.


Unconventional Success | Book by David F. Swensen | Official Publisher Page | Simon & Schuster

Instead of trying to beat the market, sucecss advocates maintaining a close what on ones asset allocations and frequently rebalancing. In Unconventional Successinvestment legend David F. The return series begins inwhen Vanguard initiated an inflation protected securities fund. Swensen is a big proponent of rebalancing on a regular schedule — in other words, every 3, 6, or 12 months, sit down and make sure that the current proportion of your investments is the same as your original plan.

High costs and poor execution doom the vast majority of offerings. He illustrates a well diversified portfolio with the following targets: Now he has a new book, Unconventional Success. This book is extremely useful and has the potential to become an swensrn. The first two parts of the book roughly the first half deals with investment theory.

The book is structured by this unconventionxl. If the equity market rises, they sell and move it into fixed income.

Accessibility links Skip to main content Keyboard shortcuts for audio player. It also exposes the mutual fund business as one in which the investor is behind the eight ball so to speak.

The book could use a more careful treatment of nuts and bolts as well. Awensen book has some careful selected and compiled tables that actually show that his points are not some sort of gut feeling.