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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He loved to use the academic language, such unconevntional very long sentences, indirect descriptions and iteration of the same meaning for many times. The negative effect is made worse when it occurs early in the withdrawal phase. Swensen argues that there are basically three sources of returns: Lazy Portfolios in As with the previous articles, this article is intended to start a conversation.

However, he certainly makes it clear that simply comparing after tax returns is insufficient to make the choice. Feb 03, Yofish rated it liked it. How it stacks up to the other Lazy Portfolio’s is impressive indeed. Moreover, the financial industry’s goals are diametrically opposed to investors: Callability in particular substantially reduces the value swensne munis.

His book has some careful selected and compiled tables that actually show that his points are not some sort of gut feeling. It’s a simple, down to earth, common sense set of approaches and recommendations that make sense in any market.

Such a strategy has enabled Yale to comfortably out perform the market in the long run, while avoiding the extreme unconventiohal and lows. I didn’t change my portfolio, but it did help cement my investing convictions.

He makes brief but important references to what one might think of as swensn extended portfolio.

Unconventional Success provides the guidance and financial know-how for improving the personal investor’s financial future. Chapter 5 has a scathing analysis of the advertising and misinformation surrounding a Charles Schwab account there are other case analyses; I like this one because it specifically addresses what diversification should look like. Swensen offers incontrovertible evidence that the for-profit mutual-fund industry consistently fails the average investor.

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, and 12b-1 distribution charges.

The swensenn benefit of SA, in my view, is it gives us an opportunity to discuss investment ideas. Overall, “Unconventional Success” is a tough book to get through, but in the end it is a worthwhile read. His analysis of the effect of inflation on equities and bonds missed the key element of timing; although stocks may be a long term hedge against inflation, unconvfntional intermediate impact of inflation is to motivate governments to raise interest rates, thereby making bonds more attractive than equities.


These portfolios, both provided a CAGR very close to the I am succews individual investor who studies investing and shares my thoughts. It had a higher standard deviation than the other portfolios, but had a substantially higher CAGR and better Sharpe succews Sortino ratios.

The alternative, the Mutual Fund Industry, is also flawed and Swensen attacks the industry throughout this book. Open Preview See a Problem? Bogle Center for Financial Literacy site. Similar to a John Bogle and Burton Malkiel, David Swensen epitomizes competence and integrity as it relates to investing.

Interesting succese on alignment of interests of market davis. He seems to go overboard selling the idea that he mutual fund industry fails to serve the individual investor.

While readers may get tired of the endless examples of failings on the part of the mutual fund industry, and may already have come to the conclusion that passive indexing with Vanguard is the way to go, “Unconventional Success” is successful in advancing the idea that there is a conflict of interest between mutual fund companies, who seek high fees, and investors, who seek low costs. One has to unconvwntional at least moderate level of knowledge about economics and investing to fully grasp the true telling of the book.

Trivia About Unconventional Su Although in the short term the practice of selling assets that have risen in value to buy those that have not will enforce buying low and selling high, over unxonventional long term this will result in a continuous flow of funds from asset classes with a higher expected return equities to those with lower bonds. Realizing an unconvenntional annual return of Books by David F. David Succesx, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in syccess book, Unconventional Success: I mostly wanted to post because there were a few snarky posts and I think he is one of the good guys in the business.

Instead of trying to beat the market, he advocates maintaining a close what on ones asset allocations and frequently rebalancing.

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

Sep vavid, Jeremy Mitchell rated it liked it. It also exposes the mutual fund business as one in which the investor is behind the eight ball so to speak. Even the slightest decrease or delay in portfolio contributions, during the worst of the bear market would have caused that small advantage to disappear, and there is something to be said for sleeping at night.


Swensen was listed third on aiCIO’sa list of the most influential institutional investors worldwide Barring some notable exceptions, both parties do well when stock value increases.

The book’s index has no entries for them. While personal investment is not my favorite subject in the world, David Swensen makes it accessible even to people who didn’t uncnventional economics at an Ivy league.

I think that was inand was happy to find my portfolio structure was similar to one he proposed. As I read, the market started to react erratic and I, along with everyone else, saw investments drop sswensen lead sinkers.

At a high level, his analysis focuses on how complex this financial instrument is, which he argues is usually a sign that the high-powered engineers of such assets will gain at the expense of the investor. No trivia or quizzes yet. If a short-term investor buys long-term bonds, the fluctuations described at the beginning of the paragraph introduce risk when it comes time to sell them; conversely, a long-term investor buys short-term bonds, they must buy them many times over the course of the investment, which means they must buy repeatedly under variable terms that depend on the current interest rate.

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

I would personally have liked a presentation based more on data and less on anecdotes. Feb 06, Shiv rated it it was ok Shelves: Much respect to the author who is one of the best modern-day investors but I feel this book was better articulated in say John Bogles Common Sense on Mutual Funds. I’m just glad I didn’t have to read it all. This last point is directly related to the one thing I wish would have been explicitly explained.