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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Perhaps most destructive of all are the hidden schemes that limit investor choice and reduce returns, including “pay-to-play” product-placement fees, stale-price trading scams, soft-dollar kickbacks, sucess 12b-1 distribution charges. 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: However, when it comes to investing, doing nothing or, more accurately, very little can be a much better approach, a strategy admittedly at odds with other aspects of life.

Detailed, comprehensive, and sensible. The tables below give annual returns, compound returns, and standard deviations for the Swensen portfolios, using returns for Vanguard investor share fund selections.

Swensen splits his fixed assets between regular treasury bonds and Tips Inflation protected bonds. Overall, “Unconventional Success” is a tough book swensrn get through, but in the end it is a worthwhile read. The common practice of selling losers and buying winners and doing both too often damages portfolio returns and increases tax liabilities, delivering a one-two punch to investor aspirations. He must be right.

Unconventional Success : NPR

From excessive management fees to the frequent “churning” of portfolios, the relentless pursuit of profits by mutual-fund management companies harms individual clients. Want to Read Currently Reading Read.

This post will use an intermediate treasury fund as the vehicle for the bond allocation. Aug 28, Benjamin rated it really liked it. I’m just glad I didn’t unconventiona to read it all. See great eBook deals.

Investors have never had it so good: Clear outline of the motivations for changing how you invest for your future!


Oct 30, Jordi Costa rated it it was amazing. Barring some notable exceptions, both parties do well when stock value increases.

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

Sep 28, Jesse added it. Jul 17, Casey rated it liked it.

Instead, Swensen encourages people to invest in low cost index funds that match up swenseen your investment goals. The first two parts of the book roughly the first half deals with investment theory.

Swensen warns against the practice of active management funds which try to beat the market, acknowledging that swensrn every win, someone has to lose. Fortunately, with time and effort the pieces will come together and reveal the bigger picture. Asset Allocation So, the first question: One need not swemsen a degree in human behavior to assume these cash payments may influence the advice an an advisor provides.

Swensen offers incontrovertible evidence that the for-profit mutual-fund industry consistently fails the average investor. At times the creators and issuers of complex securities fail to understand how the securities might behave under various circumstances. Keep in mind that past performance does not forecast future performance.

More concretely, he argues that the ability for these loans to be paid off early means that they are not a good substitute for government bonds, and that the pricing is too complex for an investor to tell if they are being adequately compensated for this fact. He sees REITS as long-term investments and certainly those who have invested in REITS several years ago will have to take a real long term outlook before they can recoup their investment.

It’s much more approachable and covers a lot of the same ground. Swensen is even a decent human being, paying himself far less than he succeess earn on Wall Street.

Sep 26, Rtwfroody rated it liked it. This book is not yet featured on Listopia. I’m also not sure the hundreds of pages of criticism aimed at the mutual fund industry are very helpful, though there 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.


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. Get your free lesson today! It’s hard for me to follow the author’s ideas and I lost my patience in some chapters when the author dedicated a few pages to repeat one same idea back and forth. He is notable for inventing The Yale Model which is an application of modern portfolio theory.

While the financial services industry reports fund performance in gross, top line performance, what individual investors actually take home can be far different. Your purchase helps support NPR programming. Jan 29, Matt Krueger rated it really liked it.

The return series begins inwhen Vanguard initiated an inflation protected securities fund. Mar 24, Hugh Miller rated it it was amazing.

Hardcoverpages. Quotes from Unconventional Su I remain conflicted suuccess the role that bonds should play in my own portfolio. Instead, Swensen takes a more swenseen approach. Portfolio Construction Swenson basically ranks the core asset classes by risk, with developing market stocks being the riskiest and the TIPS and treasury notes being the least risky.

Instead, define your philosophy for investing right off the bat and stick to it. Serious investors avoid entering the market-timing morass. He never explicitly addresses why such a poorly constructed index continues to exist, but it doesn’t take a large mental leap to assume that it serves as a very useful from the standpoint of investment firms benchmark that is easy to outperform which in turn pads the performance-based fees.

In the whole mutual fund unconcentional, he only identifies three funds favorably.