Unconventional Success by David F. Swensen (2005, Hardcover)

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.