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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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David Swensen Unconventional Success Discuss all general i. If you did, what are your thoughts? Is the book still relevant since it was published in ? What about other asset classes that may not have been as accessible in a low cost format when the book was published such as International REITs i. Swensen recommend a large allocation to REITs in general and a larger at the time international allocationInternational Bonds, etc.

Has anyone implemented the Yale investment portfolio personally? My surprise is was how far ahead the Three Fund Portfolio is. Taylor has always written about the many benefits of the Three Fund Portfolio. How it stacks up to the other Lazy Portfolio’s is impressive indeed.

A man is rich in proportion to the number of things he can afford to let alone. A giant distraction from the business of investing. The unconvventional chapter is great investment reading and I highly recommend it.

The next chapters are more of a take down of active succcess which will not really be useful to long time bogleheads. I would have thought that a thread on David Swensen would have received many more responses. Perhaps the Yale Portfolio is out of favor. I read Unconventional Success inwhen I was 55 and just starting to figure out retirement planning. I took it to heart. I will not deviate from [Swensen’s allocation] unless it is shown seriously deficient.

Didn’t even know unconvenrional blog existed. Interesting thoughts on alignment of interests of market participants. David Swensen, Yale endowment investment advisor, popularized a diversified non-traditional portfolio which included private equity, hedge funds, real estate and alternate assets.

Unconventional Success

Swenson himself has said that most endowments that attempt to follow his strategies are unlikely to find such success. The following is an article in Institutional Investor nuconventional by Julie Segal based on an in depth independent study unconcentional Swenson’s techniques and success by Markov Processes International. The conclusion is that Swensen’s outsized performance comes as a result of taking outsized risk.


The more things appear to change in the investing arena, the more they may remain the same. The book’s index has no entries for them. Swensen is well aware of the factors.

But, REITs are generally classed as value stocks, and some of dsvid are pretty small. There must be many thousand on people running endowments, just by random chance some will greatly outperform.

I don’t see how that is much different than similar out performance retrospectively by active mutual fund managers.

Once in a while you get shown the light, in the strangest of places if you look at it right. That really helps clarify some AA issues. 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. I’ve been succcess pleased with the performance and have stayed the course with that allocation ever since. Last edited by Ice-9 on Mon Oct 29, 3: My Value tilts have caused me to trail the market since the financial crisis and bear market.

I remember crying in my root beer over the New Year’s weekend. Surprisingly, I have done better than a lot of the “lazy” portfolios listed on Marketwatch but still couldn’t match the simple 3 fund portfolio. Last edited by nedsaid on Mon Oct 29, 3: He invested in some set of Alts that worked out, I suspect unconventjonal invested in a different set of Alts, and you never hear about them. Was that due to some inherent superior knowledge, or just random chance?

David Swensen’s portfolio (from Unconventional Success) – Update | Financial Page

I’d already read ‘The intelligent asset allocator’ by Bernstein; loved the content and discussion. I think that was inand was happy to find my portfolio structure was similar to one he proposed. Then I read Swenson right after, and I really liked the book, both for the advice about what types of bonds to hold, as well as for the generic thought process behind the book. I didn’t change my portfolio, but it did help cement my investing convictions.


I found Bogleheads somewhat later, as I recall. There’s a lot of Boglehead principles in it. His example portfolio is a great example of good diversification.

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. I read the book and really liked it. Swensen is a clear thinker and explained himself well. The purpose seems to be to protect in all environments. It seems like if you fundamentally believe in a certain type of diversification, you talk about the first three PP vs Swensenand if you think that equity and bonds are enough to diversify due to factors, or intl.

Talking about the Swensen portfolio vs. I really like the idea of this portfolio in its simplest form: Treasuries This is close enough while cutting the equity portion to 1 fund from 2 or 3. Not unconvenfional if everything in this portfolio is “needed” but then who knows what is needed until the time that it is.

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. People should be able to question the moving parts of his allocation, but questioning his motives etc.

David Swensen Unconventional Success –

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. How many folks have read the book Unconventional Success?

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