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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Hardcoverpages. A man is rich in proportion to the number of things he can afford to let alone. The second half quickly descended into a rant against the mutual fund industry. Read this as you begin or continue your journey as an investor. Feb 13, Jeff rated it really liked it. I’m also not sure the hundreds of unconventkonal of criticism aimed at the mutual fund industry are very helpful, though there is something to be sa David Swensen’s contrarian investment strategy, translated to dafid realm of individual investors, is a great contribution to the personal finance literature.
Let’s see how they compare to each other.
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 ewensen.
I read the book and really liked it. This section was well written and explores the various options for investing and provides a good introduction into the various forms of securities available. Coincidentally, the funds performances are quite good, beating the associated benchmarks by hundreds of basis points over 10 and 20 year time-frames. I would have thought that a thread on David Swensen would have received many more responses.
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Unconventional Success
However it is written in an academic style and thus is not suitable for everyone. Swensen warns against the practice of active management funds which try to beat the market, acknowledging that for every win, someone has to lose.
He explores taxes on mutual funds and how when someone else sells their portion of the fund, it creates tax liabilities for all the fund owners. Always a pioneer, his new book presents an approach to investing that is both brilliant and practical. Free Press August Length: Portfolio 3 is the Swensen portfolio from this article. And he drops a few pop culture references which leads me to believe he’s pretty well-rounded.
Inflation, on unconventiohal other hand, harms bonds. I consider this a group effort. A great read for the individual investor, whose career is outside financial services and even those inside.
KISS Retirement Portfolio: David Swensen’s ‘Unconventional Success’ | Seeking Alpha
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. However, it will also enhance the downside risk of a portfolio.
For instance, if you own your own house, that could substitute for an investment in REITs. I’m wondering a how much did Swensen get paid to sell this fund manager in his book, and b why select a fund company that both does it the right way and vastly outperform, if your agenda is to bash mutual funds and active management?
I didn’t change my portfolio, but it did help cement my investing convictions. The return series begins inwhen Vanguard initiated an inflation protected securities fund.
That said, I appreciate the rigorous academic work here. Goodreads helps you keep track of books you want to read. I will change my thin By the guy who runs Yale’s endowment fund. uncomventional
People should be able to question the moving parts of his allocation, but questioning his motives etc. Because asset classes tend to revert to the mean, it is best to unconventionzl a systematic rebalancing plan in place to avoid this indirect form of market timing. It had a higher standard deviation than the other portfolios, but had a substantially higher CAGR and better Sharpe and Sortino ratios. As the money under their management increases, they earn far more from the base fees than from any performance-based bonuses.
Unconventional Success: A Fundamental Approach to Personal Investment by David F. Swensen
I am an individual investor who studies investing and shares my thoughts. Tell us what you like, so we can send you books you’ll love. Bogle Center for Financial Literacy. Traditionally, the rule has been it takes at least 30 different stocks, diversified in various sectors of the economy, to reduce risk.
I don’t do this portfolio, I do the Bernstein “No Brainer”, but he and Bernstein are the writers whose prose I enjoy reading the most, so I have read the book a few times esp. Given a long enough bear market most investors dafid panic or simply not be able to afford to wait it out, especially those who are in withdrawal phase and using their portfolio to fund their retirements.
You are responsible for performing your own due diligence and for making your own investing decisions. This is the downturn that took some of the luster from Swensen’s reputation. In Chapter 8, he takes unconventiional Russell indices to task. Swensen doesn’t touch unfonventional these crucial questions. The next chapters are more of a take down of active management which will not really be useful to long time bogleheads. He provides some arbitrary percentages of portfolio distribution with no clear indication of why he made those choices.
He has mostly favorable things to say about Vanguard Funds it’s non-profit and sweensen Longleaf Partners, a small fund that’s mostly closed to new investors. He illustrates a well diversified unconventiobal with the following targets: Refresh and try again. A Fundamental Approach to Personal Investment.
It also exposes the mutual fund business as one in which davic investor is behind the eight ball so to speak.
Comparing the past results of the KISS portfolios, it is hard to ignore how much better the portfolio discussed in the first article performed. Oct 30, Jordi Costa rated it it was amazing. However, I liked the way Swensen substantiates his claims.