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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This last point is directly related to the one thing I wish would have been explicitly explained. It’s not enough to beat mar This is an incredibly interesting book written in an incredibly dry style.

However, the general principals in the book are well-thought and provide an appealing investment strategy from a financial professional. Just a moment while we sign you in unconventonal your Goodreads account.

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

The screed is entertaining, and potentially informative, but ultimately it makes the book rather imbalanced and lacking a constructive message. But if the problems of active management don’t surprise you, you could distill this book down to a one-word take-away message: He illustrates a well diversified portfolio with the following targets: Swensen splits his fixed assets between regular treasury bonds and Tips Inflation protected bonds. He is notable for inventing The Yale Model which is an application of modern portfolio theory.

See David Swensen portfoliogoogle drive spreadsheet for return computations. It is not enough to just invest with an index fund or invest with Vanguard, because even index funds can charge high fees and even Vanguard has shortcomings.


His example portfolio is a great example of good diversification. Treasuries This is close enough while cutting the equity portion to 1 fund from 2 or 3.

David Swensen’s portfolio (from Unconventional Success)

From excessive management fees to the frequent “churning” of portfolios, the relentless pursuit of profits by mutual-fund management companies harms individual clients.

I definitely prefer “Lazy Person’s Guide to Investing” for much of the same information presented in a much more accessible manner. However, my experience succesd been that generally the greater assets under management accumulated by a mutual fund, the greater the difficulty in deploying those funds effectively, and thus the outlet is to buy large cap companies, which in turn realistically would engender a more index-like return minus fees and expenses, of course.

Taylor has always written about the many benefits of the Three Fund Portfolio. That said, I appreciate the rigorous academic work here.

Index funds, buy and hold, asset allocation, avoid tax dodges. By following bull markets, they are chasing gains at the cost of diversification, despite any pretense to the contrary.

While this allocation is actually pretty conventional based on what I have read in other passive investing books, “Unconventional Success” includes the best explanation of REITs as a core asset class that I have read. Must redeem within 90 days. I found it a tough slog, but I learned some succesd things.

The Russell example also serves as yet another of Swensen’s dry jabs at the davic industry. The backtesting was done at PortfolioVisualizer.

He must be right. The book also explores the downside of active management and other aspects of finance, like ETFs. This book is long winded at times and is showing its age, but the fundamental message it portrays is still sound. And I believe the author spends too much time including examples of mistakes and fraud committed on wall street, which I would assume most of his readers already know if they’re picking up this book, and not enough time on examples of how to avoid such pitfalls.


Besides including lots of practical investing advice, it deftly justifies the stance that the vast majority of investors cannot beat the market, and less important, but more fun skewers the investment industry.

Lazy Portfolios in David Swensen, investment manager of the Yale University Endowment Fund, has addressed how investors should set up and manage their investments in his book, Unconventional Success: May 14, Karsten W.

It’s a simple, down to earth, common sense set of approaches and recommendations that make sense in any market. Is the book succsss relevant since it was published in ?

The author is not receiving compensation for it other than from Seeking Alpha. Feb 09, Jon rated it liked it. Unconventional Success provides the guidance and financial know-how for improving the personal investor’s financial future. I’ve been mostly pleased with the performance and have stayed the course with that allocation ever since.

Nearly insurmountable hurdles confront ordinary investors.