Warren Buffett's - modified 80/20
This portfolio follows the guidelines that Warren Buffett has written in his will for his wife's trust in the 2013 letter to Berkshire Hathaway shareholders. They state that the trustee should invest 90% in a low-cost S&P 500 index fund, with the remaining 10% invested in a short-term government bonds fund. The basic strategy is to own a major slice of all American businesses that are bound to grow in total. Buffett believes this portfolio is "superior to those attained by most investors - whether pension funds, institutions or individuals."
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
FFRHX Fidelity Floating Rate High Income Fund | High Yield Bonds | 20% |
VOO Vanguard S&P 500 ETF | Large Cap Growth Equities | 80% |
Performance
Performance Chart
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The earliest data available for this chart is Sep 9, 2010, corresponding to the inception date of VOO
Returns By Period
As of May 15, 2025, the Warren Buffett's - modified 80/20 returned 0.55% Year-To-Date and 11.13% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.19% | 9.00% | -1.55% | 12.31% | 15.59% | 10.78% |
| Warren Buffett's - modified 80/20 | 0.55% | 7.57% | -0.44% | 12.18% | 15.35% | 11.13% |
| Portfolio components: | ||||||
VOO Vanguard S&P 500 ETF | 0.59% | 9.01% | -0.97% | 13.78% | 17.18% | 12.68% |
FFRHX Fidelity Floating Rate High Income Fund | 0.15% | 1.90% | 1.47% | 5.66% | 7.63% | 4.55% |
Monthly Returns
The table below presents the monthly returns of Warren Buffett's - modified 80/20, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2.27% | -0.99% | -4.57% | -0.89% | 4.99% | 0.55% | |||||||
| 2024 | 1.53% | 4.37% | 2.67% | -2.97% | 4.14% | 2.74% | 1.21% | 1.89% | 2.03% | -0.56% | 4.80% | -1.68% | 21.77% |
| 2023 | 5.65% | -1.91% | 2.99% | 1.34% | 0.47% | 5.69% | 2.86% | -1.09% | -3.79% | -1.64% | 7.58% | 3.87% | 23.56% |
| 2022 | -4.14% | -2.46% | 3.03% | -7.09% | -0.23% | -7.02% | 7.74% | -2.94% | -7.83% | 6.72% | 4.70% | -4.73% | -14.81% |
| 2021 | -0.61% | 2.43% | 3.62% | 4.35% | 0.67% | 1.88% | 1.93% | 2.51% | -3.63% | 5.73% | -0.69% | 3.81% | 23.92% |
| 2020 | 0.01% | -6.81% | -12.32% | 10.89% | 4.63% | 1.56% | 5.09% | 5.90% | -2.99% | -2.02% | 9.26% | 3.27% | 14.91% |
| 2019 | 6.88% | 2.93% | 1.52% | 3.55% | -5.18% | 5.62% | 1.32% | -1.37% | 1.72% | 1.64% | 3.01% | 2.71% | 26.61% |
| 2018 | 4.66% | -3.00% | -1.99% | 0.44% | 1.94% | 0.55% | 3.09% | 2.64% | 0.60% | -5.49% | 1.28% | -7.48% | -3.45% |
| 2017 | 1.51% | 3.20% | 0.13% | 0.89% | 1.23% | 0.50% | 1.82% | 0.18% | 1.70% | 1.97% | 2.48% | 1.12% | 18.03% |
| 2016 | -4.11% | -0.23% | 6.03% | 0.74% | 1.55% | 0.24% | 3.23% | 0.31% | 0.17% | -1.33% | 3.03% | 1.87% | 11.74% |
| 2015 | -2.25% | 4.76% | -1.23% | 1.01% | 1.02% | -1.68% | 1.68% | -5.09% | -2.07% | 6.81% | 0.15% | -1.57% | 0.98% |
| 2014 | -2.73% | 3.68% | 0.74% | 0.59% | 1.94% | 1.78% | -1.14% | 3.23% | -1.27% | 2.00% | 2.25% | -0.51% | 10.86% |
Expense Ratio
Warren Buffett's - modified 80/20 has an expense ratio of 0.16%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Warren Buffett's - modified 80/20 is 41, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
VOO Vanguard S&P 500 ETF | 0.71 | 1.02 | 1.15 | 0.66 | 2.55 |
FFRHX Fidelity Floating Rate High Income Fund | 1.77 | 2.87 | 1.68 | 1.72 | 7.93 |
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Dividends
Dividend yield
Warren Buffett's - modified 80/20 provided a 2.64% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.64% | 2.66% | 2.81% | 2.37% | 1.65% | 2.00% | 2.54% | 2.60% | 2.23% | 2.40% | 2.53% | 2.28% |
| Portfolio components: | ||||||||||||
VOO Vanguard S&P 500 ETF | 1.29% | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% |
FFRHX Fidelity Floating Rate High Income Fund | 8.03% | 8.33% | 8.25% | 5.06% | 3.27% | 3.85% | 5.17% | 4.75% | 4.01% | 3.94% | 4.25% | 4.00% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Warren Buffett's - modified 80/20. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Warren Buffett's - modified 80/20 was 31.67%, occurring on Mar 23, 2020. Recovery took 102 trading sessions.
The current Warren Buffett's - modified 80/20 drawdown is 3.09%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -31.67% | Feb 20, 2020 | 23 | Mar 23, 2020 | 102 | Aug 17, 2020 | 125 |
| -20.42% | Jan 4, 2022 | 197 | Oct 12, 2022 | 201 | Jul 31, 2023 | 398 |
| -16.27% | Oct 4, 2018 | 56 | Dec 24, 2018 | 70 | Apr 5, 2019 | 126 |
| -15.84% | May 2, 2011 | 108 | Oct 3, 2011 | 85 | Feb 3, 2012 | 193 |
| -15.61% | Feb 20, 2025 | 34 | Apr 8, 2025 | — | — | — |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 2 assets, with an effective number of assets of 1.47, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | FFRHX | VOO | Portfolio | |
|---|---|---|---|---|
| ^GSPC | 1.00 | 0.27 | 1.00 | 1.00 |
| FFRHX | 0.27 | 1.00 | 0.27 | 0.30 |
| VOO | 1.00 | 0.27 | 1.00 | 1.00 |
| Portfolio | 1.00 | 0.30 | 1.00 | 1.00 |