Comments on: Review: Unconventional Success

By: saroj yadav

saroj yadav — Mon, 04 Feb 2008 17:56:03 +0000

This sounds good. I will add it to my book list.

By: lorax

lorax — Sat, 02 Feb 2008 02:02:55 +0000

_Unconventional Success_ is the most thorough treatment to the “whys” of portfolio construction I’ve read.

To say its written for the educated reader is the understatement of the year! :) You’ll either want to have read one of the simpler personal finance books first, or be prepared to read the book a few times. Pick up _Investing for Dummies_ or _A Random Walk Down Wall Street_ if you need a primer.

The book goes into great depth about good vs bad index funds, why junk bonds are bad, and why corporate bonds aren’t much better. It’s a great read! But come prepared.

By: Susan

Susan — Fri, 01 Feb 2008 18:09:43 +0000

thanks for the recommend, i’ve been trying to figure out how to go about getting started in this.

http://www.theinnovativetraveler.com

By: Matt

Matt — Fri, 01 Feb 2008 17:28:16 +0000

I read this book last fall and I really enjoyed it. I plan to implement a version of his plan tailored to my needs when I start investing heavily again once my debt is paid off.

By: BB

BB — Fri, 01 Feb 2008 15:47:07 +0000

It’s important to note that in this book Swenson essentially says that the tactics that he used to build Yale’s endowment are not available to the average individual investor. So if you buy this book hoping that his suggestions will yield you 16% over the longterm — well, they probably won’t.

On the other hand, I have followed a mock portfolio based on his recommendations over time, and it does seem to be a good, steady portfolio, and probably the best choice for most people.

One concern I have (though I don’t know too much about these things) is that it puts a pretty big stake in real estate. Since the 1980s, that’s been a pretty solid place to be. However, the housing bubble is very real, and if 10-20% of your retirement money in in real estate (in addition to what you have invested in any real estate you may personally own), a housing correction may hit you hard.

But I agree – it’s a great book and he’s a great guy. Kudos to him.

By: partgypsy

partgypsy — Fri, 01 Feb 2008 15:06:24 +0000

I am an alumnus of Grinnell College, which has an amazing endowement especially considering its size due to the shrewd investments of the trustees. That would be another interesting story to look up.

By: Lisa Spinelli

Lisa Spinelli — Fri, 01 Feb 2008 14:52:52 +0000

Sounds like he takes a very pragmatic approach. I like that the best as well. I’ve seen enough inspirational “cheerleader” type books. I think I’ll pick this up. FYI, I am new to the stock market, and want to understand how to evaluate stocks and ETFs (Exchange Traded Funds). I have been finding Jason Kelly’s book, “The Neatest Little Guide to Stock Market Investing”, very helpful and practical. It’s exactly what I need to get started. Once I have a rudimentary understanding of what it’s all about, I can dig deeper.

Have a good day.
Lisa

By: Jeremy

Jeremy — Fri, 01 Feb 2008 14:45:23 +0000

NPR did an interview with Swensen just after the book came out, a quick google will find it.

I found Unconventional Success to be a nice change from the usual “buy-and-hold low-cost index fund” advice. That’s excellent advice, but once you read “A Random Walk Down Wall Street” and a John Bogle book, reading more books in that style tends to yield diminishing returns.

Swensen, however, uses Tobin’s “q” to demonstrate how holding stocks hedges against inflation, and gives good reasons why you should hold only Treasuries and not hold corporate or high-yield bonds. By implication, then, instead of buying a Total Bond Market index fund, you should buy a Treasury-only index fund. So I think this book does present useful new ideas.

However, the writing is very, very dry. Clear, but dry. And almost half the book is devoted to the failings of the mutual fund industry, which are occasionally entertaining, but which you can skip because you’ve probably heard it all before.

Overall, though, it is definitely worth your time to read the first half of the book and even take notes.

By: Frugal Dad

Frugal Dad — Fri, 01 Feb 2008 14:20:09 +0000

I typically check out Easterbrook’s column during the season, but missed this post. Thanks for getting it in front of me so I could check out his endorsement.