David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their. David Swensen’s portfolio (from Unconventional Success). DavidSwensen. “ Individual investors should take control of their financial destinies. Bogleheads – How many folks have read the book Unconventional Success? If you did, what are your thoughts? Is the book still relevant since it.

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Swensen warns against the practice of active management funds which try to beat the market, acknowledging that for every win, someone has to lose. Most investors given a siccess enough bear market will panic; in fact bear markets can only occur when there are more sellers than buyers causing prices to drop until the demand matches the supply.

I recommend the individual investor read the first half of the book, glean some asset allocation advice from a superior endowment manager, and leave the second-half for the birds. David Swensen, a hero of mine, elucidates portfolio construction and management for the individual investor, extending the excellent work that he produced in Pioneering Portfolio Management.

He cites studies that indicate that you can attain the benefits of index funds and almost completely avoid fees by owning a diversified portfolio of individual stocks.

The little guy lost. When I learned that a revised version of Pioneering Portfolio Management was being written and scheduled to be released in early inI decided to read his book for personal investment that was published just three years ago.

In Swensen’s discussion of different asset classes, he always includes a section devoted to alignment of interests between the investor and the manager of the assets.

KISS Retirement Portfolio: David Swensen’s ‘Unconventional Success’

How it stacks up to the other Lazy Portfolio’s is impressive indeed. Thank you for signing up, fellow book lover! As far as waiting out a bear market, I believe investors are biased by the fact that recent bear markets have had quick recoveries. In fact, almost all have gone through at least one period of such disruption war, To see what your friends thought of this book, please sign up.


His book has some careful selected and compiled tables that actually show that his points are not some sort of gut feeling. Note that returns for portfolios holding admiral shares would produce a return enhancement of approximately 0.

No trivia or quizzes yet. Price may vary by retailer. Trivia About Unconventional Su Swensen, like most investment gurus, is in favor of well diversified portfolios, where each asset class is large enough to matter but small enough that it mitigates risk. The Barbell Portfolio, from the first article, that invested in only Treasuries, small cap value and emerging markets had the best overall results.

Swensen is also scathing in his discussion of asset-backed securities, of which the most common are mortgage-backed securities. Tell us what you like, so we can send you books you’ll love. Portfolio 3 is the Swensen portfolio from this article. Callability in particular substantially swenaen the value of munis.


Perhaps most destructive of all are the hidden schemes that limit investor choice and reduce returns, including davie product-placement fees, stale-price trading scams, soft-dollar kickbacks, and 12b-1 distribution charges.

Unconventional Success is a perfect summary of what is wrong with a very important industry. Amongst the KISS portfolios, reviewed in these articles, this is the closest to my personal portfolio.

There’s a lot of good information here, but the writing is not very engaging.

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

I don’t see how that is much different than similar out performance retrospectively by active mutual fund managers.

A Fundamental Approach to Personal Investment,” written by David Swensen, who has had great results as the chief investment officer of Yale University, puts forth a simple premise for investors: In Unconventional Successinvestment legend David F. Low cost, tax efficient, market-mimicking funds available either through Exchange Traded Funds ETFs or from not-for-profit mutual fund companies. Feb 06, Shiv rated it it was ok Shelves: While the author may get redundant, he succeeds in driving home this point home that, as investors, we have to be careful to ensure we are investing in assets and companies that align with our own interests, and the best way to do this is with not-for-profit organizations in certain core asset classes.


Pretty long, drawn-out, and dated.

The accompanying table provides returns for these portfolios. Unfortunately, he does not directly address how to get from a position of owning 20 stocks with low basis value to a fully diversified portfolio.

In this series of articles, we will present simple index fund based portfolios. So, there is a bit of an apparent contradiction of premises among a few of the arguments presented. It’s not enough to beat mar This is an incredibly interesting book written in an incredibly dry style. The bestselling author of Pioneering Portfolio Managementthe definitive template for institutional fund management, returns with a book that shows individual investors how to manage their financial assets.

Talks about how individuals should not invest their money. Unfortunately for those who have already read his Pioneering Portfolio Management, there’s not a lot that’s new here. Your basic investment primer. Swensen’s portfolio is more complex than the three fund portfolios reviewed in the first two articles in this series. The “tech wreck” provides another good time frame to assess how the portfolio did in bear markets. I really like the idea of this portfolio in its simplest form: