Warren Buffett's 90/10 Portfolio
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."
The chart shows the growth of an initial investment of $10,000 in Warren Buffett's 90/10 Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly
The earliest data available for this chart is Sep 9, 2010, corresponding to the inception date of VOO
As of Dec 9, 2023, the Warren Buffett's 90/10 Portfolio returned 19.89% Year-To-Date and 10.92% of annualized return in the last 10 years.
Monthly Returns Heatmap
Warren Buffett's 90/10 Portfolio granted a 1.56% dividend yield in the last twelve months.
|Warren Buffett's 90/10 Portfolio||1.56%||1.67%||1.27%||1.57%||1.92%||2.05%||1.77%||1.96%||2.03%||1.81%||1.80%||2.12%|
|Vanguard Short-Term Bond ETF||2.39%||1.50%||1.45%||1.79%||2.29%||1.99%||1.65%||1.48%||1.40%||1.45%||1.48%||1.61%|
|Vanguard S&P 500 ETF||1.47%||1.69%||1.25%||1.54%||1.88%||2.06%||1.78%||2.02%||2.10%||1.85%||1.84%||2.18%|
The Warren Buffett's 90/10 Portfolio has an expense ratio of 0.03% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
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.
Asset Correlations Table
The Drawdowns chart displays portfolio losses from any high point along the way.
The table below displays the maximum drawdowns of the Warren Buffett's 90/10 Portfolio. 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 90/10 Portfolio was 30.73%, occurring on Mar 23, 2020. Recovery took 95 trading sessions.
|-30.73%||Feb 20, 2020||23||Mar 23, 2020||95||Aug 6, 2020||118|
|-22.78%||Jan 4, 2022||195||Oct 12, 2022||—||—||—|
|-17.42%||Sep 21, 2018||65||Dec 24, 2018||70||Apr 5, 2019||135|
|-16.84%||May 2, 2011||108||Oct 3, 2011||85||Feb 3, 2012||193|
|-11.52%||Jul 21, 2015||143||Feb 11, 2016||45||Apr 18, 2016||188|
The current Warren Buffett's 90/10 Portfolio volatility is 2.53%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.