David Swensen's biting opinions on the disadvantageous return/risk/fees combination for U.S. publicly traded securities (equities and fixed income) should be read by anyone interested in learning the cold, stark realities on trying to beat markets that are highly efficient.
Swensen and Dean Takahashi have long been held in the highest esteem by leading investment professionals. Now we know why: not only are there numbers great, but their thought processes are well thought out and understandable.
The challenge of readers of this book will be to accept the difficulties of beating the market without a true competitive advantage. Moving forward, the challenge for Swensen, and Yale, will be to continue to outperform their benchmark now that their strategy will be widely disseminated. And, of course, copied.
