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David Swenson provides a very compelling case for diversified, low cost index fund/ETF investing, and frequent rebalancing to maximize returns and minimize risk. One should note that some in the media have lumped his approach in with so-called 'lazy portfolio' approaches. While David advocates a passive approach in the sense that it does not seek to time the market, he encourages frequent rebalancing. The book does well to cite studies and evidence that support the main thrusts mentioned above. When the reader finishes the book, they have a good understanding of the fundamentals, and can make the decisions necessary to execute the proposed approach. A secondary theme is the perils of investing in actively managed funds. The evidence is overwhelming in support of the premise that actively managed funds do not meet their fiduciary responsibility to investors. Another nice aspect of the book is the treatment of different asset classes, and why each may or may not make sense for the individual investor. I found a few areas of improvement for the book. The first is that the writing style is somewhat redundent. The basic points of a chapter are stated in the chapter introduction, in the body of the chapter, and again in the chapter summary. Secondly, the writing style is a little dry for general consumption. For those that are used to a quicker pace, or more vibrant writing style, it will take some getting used to. I encourage any reader to work past this and grasp the central messages and potential rewards.Read full review
If you save and invest for yourself and your family, this book is essential to understand do's and don'ts. Since the book was published in 2005, the investment philosophy (diversified, extremely low cost Index ETFs), strategies and tactics (like rebalancing a portfolio often to match your 'Policy Portfolio), have become easier to carry out. Vanguard and Charles Swab in particular offer investment vehicles you can use for a lifetime. I was convinced to change my ways and I am confident that between the advice and guidance of David Swensen and Bob Brinker (Money Talk and Marketimer newsletter) I am well armed to take on the future in an uncertain world.
Book is merely a polemic attack on the mutual fund industry; kind of like preaching that the wicked witch of the west is one ugly lady! The book is overwritten, w. much pretentious text to convey a paucity of content. Author's basic message is that the mutual fund industry is intentionally dishonest and riddled w. conflict of interest. Duh! Content could have been condensed into a few-page article in the NY Times Sunday Mag. No concrete recommendations for the average Joe investor on what to do.
It is a well written book with solid guidance on investment suitable for laymen and professional veterans alike. It will be one of the tenets and foundation for me to use in my investment banking advisory practice to service my clients, friends, and family. I would give it the highest rating similar to my readings on Warren Buffett and Benjamin Graham, regards, Dr. Chow
A good investor resource
Verified purchase: Yes | Condition: Pre-owned
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