A Fundamental Approach to Personal Investment
On Sale: September 6, 2005
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Self-Help | Non-Fiction
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.
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
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
In short: Nearly insurmountable
hurdles confront ordinary investors.
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.
Unconventional Success provides the guidance and
financial know-how for improving the personal investor's
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