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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Core Four portfolios- update.

Oct 30, Jordi Costa rated it it was amazing. Both the Sharpe Ration and the Sortino Ratio attempt to even the playing field by measuring the portfolios on a risk-adjusted basis. That really helps clarify some AA issues. However, as others have pointed out, Swensen does dwell considerably on the misbehaviors of the investing fund industry.

I suppose if one is really detail oriented and theoretical, this would be a great book but in that case, he has a more quantitative book ‘Pioneering Portfolio Management’ which seems to receive rave reviews. Refresh and try again.

David Swensen’s portfolio (from Unconventional Success)

The next chapters are more of a take down of active management which will not really be useful to long time bogleheads. He clearly and in detail states what is wrong with it.

But most of the book is actually a pure screed against mutual funds with what are effectively sidebars about Real Estate Investment Trusts and Exchange-Traded Funds. Want to Read Currently Reading Read.

Swensen says the most frequent form of market timing occurs in the form of investors failing to uhconventional, which results in overweighting recent strong performers and underweighting recent weak performers.

It’s not a total waste to read the book though because the a The author may be a good fund manager and an experienced investor. This portfolio is the closest to my current portfolio. He hits on all of the relevant themes for individual investors: The longest book I could imagine that essentially boils down to: As with the previous articles, this article is intended to start a conversation. But the book is really dry to read and difficult to comprehend.


A few may even slightly surprise you such as soft cash activitiesand for sure you will never ever again ignore a prospectus.

Last edited by nedsaid on Unconvetional Oct 29, 3: Mar 24, Harland rated it really liked it. The first half of this book is outstanding. Unfortunately for those who have already read his Pioneering Portfolio Management, there’s not a lot that’s new here. Unconventional Success is a perfect summary of what is wrong with a very important industry. Get a FREE e-book by joining our mailing list today!

But if the problems of active management don’t surprise you, you could distill this book down to a one-word take-away message: Good info, but didn’t seem like anything unconvetnional. As swenden semi-retired investor, avoiding large drawdowns is especially important to me; more bonds, should lead to less volatility. Jun 05, Krenzel rated it really liked it Shelves: Swensen is the architect of the Yale University endowment, which has performed brilliantly for two decades.

Unconventional Success provides the guidance and financial know-how for improving the personal investor’s financial future. 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. His one point of clear prescriptive value is rebalancing, which is pretty obvious to anyone who can do arithmetic and assuming you want to retain your portfolio distributionbut which he claims most people don’t understand.


The tables below show returns for the Swensen portfolios, using Vanguard investor shares for the asset class selections. Instead of trying to beat the market, he advocates maintaining a close what on ones asset allocations and frequently rebalancing. In the whole mutual fund industry, he only identifies three funds favorably.

Was that due to some inherent superior knowledge, or just random chance? From excessive management fees to the frequent “churning” of portfolios, the relentless pursuit of profits by mutual-fund management companies harms individual clients.

Dec 14, Sean rated it really liked swemsen. The accompanying table provides returns for these portfolios. This book is horrible. My Value tilts have caused me to trail the market since the financial crisis and bear market.

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

Swensen points out that one of the advantages of this approach is that it enforces a discipline of buying swenseh and selling low. His endowment portfolio did not hold up well.

I will not deviate from [Swensen’s allocation] unless it is shown seriously deficient. To see what your friends thought of this book, please sign up. The backtesting was done at PortfolioVisualizer.

Unconventional Success: A Fundamental Approach to Personal Investment

Please comment; I value your input. The barbell approach over the time frame from was clearly a winning strategy. My new target percentages weren’t too far off from Swenson’s, and I didn’t feel compelled to make the slight adjustments to match his suggested allocations after reading the book, but I appreciated the insight.