World Famous Comics: Unconventional Success: A Fundamental Approach to Personal Investment
Unconventional Success: A Fundamental Approach to Personal Investment
By: David F. Swensen Publisher: Free Press Average Rating: Binding: Hardcover Label: Free Press Number of Items: 1 Number of Pages: 403 Publication Date: August 02, 2005
Product Description: The bestselling author of Pioneering Portfolio Management, the definitive template for institutional fund management, returns with a book that shows individual investors how to manage their financial assets.
In Unconventional Success, investment legend David F. Swensen offers incontrovertible evidence that the for-profit mutual-fund industry consistently fails the average investor. From excessive management fees to the frequent "churning" of portfolios, the relentless pursuit of profits by mutual-fund management companies harms individual clients. Perhaps most destructive of all are the hidden schemes that limit investor choice and reduce returns, including "pay-to-play" product-placement fees, stale-price trading scams, soft-dollar kickbacks, and 12b-1 distribution charges.
Even if investors manage to emerge unscathed from an encounter with the profit-seeking mutual-fund industry, individuals face the likelihood of self-inflicted pain. 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.
In short: Nearly insurmountable hurdles confront ordinary investors.
Swensen's solution? A contrarian investment alternative that promotes well-diversified, equity-oriented, "market-mimicking" portfolios that reward investors who exhibit the courage to stay the course. Swensen suggests implementing his nonconformist proposal with investor-friendly, not-for-profit investment companies such as Vanguard and TIAA-CREF. By avoiding actively managed funds and employing client-oriented mutual-fund managers, investors create the preconditions for investment success.
Bottom line? Unconventional Success provides the guidance and financial know-how for improving the personal investor's financial future.
excellent for the intellectually-oriented investor Swensen provides a excellent analysis of different asset classes and the roles they play (or fail to play) in diversifying portfolios. For example, he clarifies the different diversifying roles of conventional Treasury bonds and TIPS, and explains why corporate, municipal and foreign bonds cannot be substituted. He also demonstrates the advantages of periodic portfolio rebalancing for the disciplined investor.
In what almost amounts to a book within a book, Swensen forcefully chronicles the failure of the mutual fund industry and its regulators to serve the interests of individual investors. This discussion is a must-read for anyone concerned about the implications of the shift towards investor managed defined contribution pension plans as the primary vehicle for retirement savings.
Swensen has not written a practical how-to guide to personal investing or asset allocation; rather, he argues for an approach to personal investing built around core principles. Intellectually-oriented investors will be well served by this book as preparation for developing a personalized investment program.
Unconventional Success: A Fundamental Approach to Investing Swensen's text is well developed and demonstrates a reasonable and rational approach to investing. Though not a text for the novice, I found it accessible to the average reader, as I gained familiarity with the language of investing, and intend to follow his advice.
Good Practical Advice Unconventional Success is well written with logical explantions, good examples and practical advice. The book goes step-by-step through a discussion of recommended types of investments and popular investments that are not receommended, active vs passive investments and market timing. I recommend it for anyone who is interested in investing. It is one of the best investment books I have read.
Fantastic! Unconventional Success: A Fundamental Approach to Personal Investment This book is a must-read for anyone who is planning to do their own investing whether in a 401k, IRA or taxable account. It gives you a simple but sophisticated approach to allocating your investments among equities (U.S. and foreign), U.S. Treasuries (regular and inflation-protected) and real estate. He shows you how to invest in index mutual funds without paying exorbitant (and unnecessary) investment advisory & management fees. He gives a blisteringly negative review of the mutual fund industry which, based on credible, academic research has failed to beat the market after taking into account the fees charged. The author's "creds" are impeccable as a star investor of one of the largest endowment funds in the U.S. I believe this book is essential reading for any investor.
An In-Depth Look for the More-Interested Investor While this is an excellent book, I knocked off a star for one main reason: I believe it to be a little too advanced to be called "fundamental."
This is the perfect book for a person with two critical attributes:
1) You have already read Burton Malkiel's "A Random Walk Down Wall Street" 2) You are looking to go beyond a employer-sponsored defined contribution plan and would like some help determining who gets your money.
I say read Malkiel first because having an understanding of the Efficient Market Hypothesis will help you get a lot more out of reading this book. While Swensen presents an excellent work, it is a bit dry and academic. If, however, you can commit to reading it carefully, I am confident you will be a better money manager for it.
Since an individual employee has little control over the firm chosen to administer the company 401(k), I believe this book to be less helpful than "A Random Walk" if you are simply seeking guidance for selecting investments in a defined plan. If, however, you are about to open your own IRA or a standard, taxable account, this book will serve as an invaluable guide.
Anything Goes Trivia
Trevor
Megaton Man
