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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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Keep in mind that past performance does not forecast future performance. The first half of the book was great for asset allocation tips, clearly delineating various asset classes as to risk exposure and historical return characteristics. A contrarian investment alternative that promotes well-diversified, equity-oriented, “market-mimicking” portfolios that reward investors who exhibit the courage to stay the course.

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.

I took it to heart. I am an individual investor who studies investing and shares my thoughts.

David Swensen Unconventional Success –

Swensen splits his fixed assets between regular treasury bonds and Tips Inflation protected bonds. Feb 03, Yofish rated it liked it.

Read this as you begin or continue your journey as an investor. Not a great succcess bit repetitive. Talking about the Swensen portfolio vs. 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. Once again, Vanguard to the rescue.

swenden Makes a lot of interesting points, but is a bit argumentative, and not very understanding about swenswn between spending all your unconventionao worrying about it, and paying others to take care of things.


As far as waiting out a bear market, I believe investors are biased by the fact that recent bear markets have had quick recoveries. However, I liked the knconventional Swensen substantiates his claims. Market Timing is hard. The portfolios are rebalanced once per year and dividends and distributions are reinvested. 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.

Aug 02, Nicholas rated it it was amazing. Published August 9th by Free Press first published August 2nd Portfolio 1 is the portfolio from the first article in this series consisting of: 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.

Recommended for anyone seeking asset allocation advice for personal investments. Traditionally, the rule has been it takes at least 30 different stocks, diversified in various sectors of the economy, to reduce risk.

Swensen’s portfolio is more complex than the three fund portfolios reviewed in the first two articles in this series. 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. One final bone to pick with Swensen’s strategy is unconvenyional long term impact of asset class balancing.

The book is structured by this argument. Good info, but didn’t seem like anything new.

Unconventional Success

The primary benefit of SA, in my view, is it gives us an opportunity to discuss investment ideas. Swensen was listed third on aiCIO’sa list of the most influential institutional investors worldwide I hear he is working on a new edition of this book to come out in the next year or so.


He realizes that most individuals have a hard time investing in individual companies. My Value tilts undonventional caused me to trail the market since the financial crisis and bear market. That really helps clarify some AA issues. In Modern Portfolio Theory, risk is measured by volatility and the theory is that taking on more risk will enhance the upside potential of a portfolio.

But I don’t think there’s anything at all wrong with the Swensen portfolio for individual investors as long as its implemented in a low cost way, and they stick to it. A man is rich in proportion to the number of things he can afford to let alone.

Hardcoverpages. If you want to avoid the snares that lurk in money management, and save yourself lots of money, you must read it. Comments to this article are contained in the post: There are a few items of reasoning that did not seem to make sense.

Unconventional Success: A Fundamental Approach to Personal Investment

However, even given the high concentration of REIT holdings, the portfolio he recommended for individual investors held up well. Nearly insurmountable hurdles confront ordinary investors. The tables below show returns for the Swensen portfolios, using Vanguard investor shares for the asset class selections. However, the general principals in the book are well-thought and provide an appealing investment strategy from a financial professional.

The more things appear to change in the investing arena, the more they may remain the same. Want to Read saving….