David Swensen's Lazy Portfolio

I have tremendous respect for David Swensen. One of my favorite books last year was his book "Unconventional Success: A Fundamental Approach to Personal Investment" and, if you haven't read it, I recommend it highly.

David is the chief investment officer of Yale University where he produced a two-decade investment record of +16.1% per year returns. His track record easily places him as one of the best managers of institutional money in the United States. So, what does one of the best money managers around recommend for individual investors? Well, here's the portfolio:

David Swensen's Lazy Portfolio:
- 30% in Vanguard Total Stock Market Index (VTSMX)
- 20% in Vanguard REIT Index (VGSIX)
- 20% in Vanguard Total International Stock (VGTSX) or (15% in VDMIX and 5% in VEIEX)
- 15% in Vanguard Inflation Protected Securities (VIPSX)
- 15% in Vanguard Short Term Treasury Index (VFISX)

For more information: 1, 2, 3, 4

Not surprising, David's lazy portfolio currently ranks also as the top performer in many of the lazy portfolios I will profile this week (last year it was up +17.62%). It is also one of my personal favorites.