Product Description

In UNCONVENTIONAL SUCCESS, investment legend David Swensen reveals why the for-profit mutual fund industry consistently fails the average investor, from its excessive management and incentive fees to the frequent 'churning' of portfolios that forces investors to pay higher taxes. Perhaps most destructive of all are flagrant schemes designed to thwart regulators and further erode portfolios, limiting investor choice and reducing returns. Swensen's solution? A 'contrarian' investment alternative that creates more diversified, equity-oriented, 'market-mimicking' portfolios that minimize loss and reward the investor with the courage to stay the course. Swensen backs up his unconventional proposal with well-documented evidence supporting not-for-profit investment management companies such as Vanguard and advice on steering clear of poorly constructed funds. Bottom line? Swensen provides the guidance and financial know-how for improving the personal investor's bottom line.

Product Details

• Amazon Sales Rank: #167933 in Books
• Published on: 2005-10-17
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 403 pages

About the Author
David F Swensen is Yale University's CIO and manages the university's USD7 billion dollar endowment as well as several hundreds of millions of dollars in other investment funds. He also serves as a trustee and director on various investment boards and teaches at Yale.

Customer Reviews

Very good perspective
Swensen is undeniably a realist and a cynic at the same time. I read this book as part of my MBA program and found his perspective very interesting and insightful. I now have a much better understanding of the overall investment business and why there are so many hand tailored suits on Wall Street. By reading this book, you will be able to choose your investment vehicles with both eyes open.

The only negative is he could have made his message easier to understand without forcing the use of every word in the English dictionary.

An academic thesis
As the title suggests, this book is an academic thesis on the failure of mutual funds. It is not a guide to personal investment for the amateur. It is written in a style of english I last saw twenty five years ago at university and is not an easy read. My final criticism relates to me being a UK Investor. Much of the criticism relates to the taxation status of mutual funds in the US which does not apply in the UK. Also charges are dealt with differently in the UK so this aspect is largely irrelevant as well. Having said all that he makes a good case for sticking to index funds and rebalancing, which is common sense good advice for the amateur.

Investment advice from a pro
Although for many investors, the stock market is the only game in town, author David F. Swensen, the experienced manager of Yale University's endowment, suggests investing in logical low-cost, fair, nonprofit index funds that track the market closely. He advocates building a carefully balanced portfolio, and strongly recommends regular rebalancing. He comes to these conclusions based on his rigorous analysis of the returns achieved by a host of other investment media, especially mutual funds. In fact, he builds his investment guidebook around a scathing scolding of the mutual-fund industry, even though mutual funds also have strong supporters. getAbstract believes Swensen's counsel will be useful for individual investors who face a bewildering array of choices. In fact, if you had a rich uncle on Wall Street to advise you, he would probably echo much of Swensen's logical advice.