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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Aug 14, Nick rated it it was ok Shelves: Given a long enough bear market most investors will 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.

Lists with This Book. An example of the practical advice is the observation that stocks are a hedge against inflation, albeit one with a lot of volatility and noise. Swensen is also scathing in his discussion of asset-backed securities, of which the most common are mortgage-backed securities. Aug 31, Junior rated it liked it. There’s a lot of good information here, but the writing is not very engaging. What are the risk levels of the core asset classes discussed in the book?

I took it to heart. Unfortunately, he does not directly address how to get from a position of owning 20 stocks with low basis value to a fully diversified portfolio. This section was well written and explores the various options for investing and provides a good introduction into the various forms of securities available.

David Swensen’s portfolio (from Unconventional Success)

Both the Sharpe Ration and the Sortino Ratio attempt to even the playing field by measuring the portfolios on a risk-adjusted basis. Unconventionsl portfolio is daivd complex than the three fund portfolios reviewed in the first two articles in this series. His recommendation of U.

No unconventjonal are made as to the accuracy of the information on this site or the appropriateness of any advice to your particular situation. Note that returns for portfolios holding admiral shares would produce a return enhancement of approximately 0. My portfolio does tilt towards small caps and contains a healthy percentage of emerging markets, but at this point I plan on continuing to hold a wider range of asset classes.


By avoiding actively managed funds and employing client-oriented mutual-fund managers, investors create the preconditions for investment success. Am working to get through this dense book that has what some people say is a good and most importantly for me, hands off investment strategy.

I consider myself a semi-passive investor; I am no longer select stocks, but I will change how I weight asset classes based on my analysis. He realizes that most individuals have a hard time investing in individual companies.

His analysis of the effect of inflation on equities and bonds missed succews key element of timing; although stocks may be a long term hedge against inflation, the intermediate impact of inflation is to motivate governments to raise interest rates, thereby making bonds more attractive than equities.

Feb 06, Shiv rated davif it was ok Shelves: By clicking ‘Sign me up’ I acknowledge that I have read and agree to the privacy policy and terms of use.

However, a portfolio with only 20 different stocks is not enough, 50 is required to be effectively diversified. Many investors believe that markets always bounce back and that they will patiently wait through any bear market holding swebsen positions until they recover.

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 this case the bear market of the early s benefits all the Portfolios. Sep 28, Jesse added it.

In Swenwen 8, he takes the Russell indices to task.

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 swensenn an investor to tell if they are being adequately compensated for this fact.

Want to Read saving…. Jan 24, Itay rated it liked it Shelves: Free Press August Length: I will change my thinking in investing, at least some.

In this I think he fails to distinguish between ignorance sjccess laziness. See David Swensen portfoliogoogle drive spreadsheet for return computations. Comparing the past results of the KISS portfolios, it is hard to ignore how much better the portfolio discussed in the first article performed.


Market situations now and in the future will never exactly match what has occurred in the past. It’s a simple, down to earth, common sense set of approaches and recommendations that make sense in any market. Is the book still relevant since it was published in ? Apr 26, Ross rated it it was amazing Shelves: Interesting thoughts on alignment of interests of market participants.

David Swensen Unconventional Success –

At Yale, where he produced an unparalleled two-decade investment record of And he drops a few pop culture references which leads me to believe he’s pretty well-rounded. The author may be a good fund manager and an experienced investor.

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. I am succesz interested in the token economy than the “core asset classes” he suggests, also his critique on mutual funds was not interesting to me because I do not plan to davkd there.

Feb 16, Jeff rated it liked it Shelves: Free eBook offer available to NEW subscribers only. As an alternative, he proposes an investment strategy based on a bias towards equities, asset allocation across a small number of asset classes with frequent rebalancing, and passive investment through index funds and rebalancing against recent market performance thereby gaining reduced management fees and avoiding market timing and security selection.

Follow Financial Page on WordPress. It is the truth, the whole truth, and the very ugly truth. I hear he is working on a new swnsen of this book to come out in the next year or so.