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."
Asset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
BSV Vanguard Short-Term Bond ETF | Total Bond Market | 10% |
VOO Vanguard S&P 500 ETF | Large Cap Growth Equities | 90% |
Performance
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
Returns
As of Oct 2, 2023, the Warren Buffett's 90/10 Portfolio returned 11.94% Year-To-Date and 10.92% of annualized return in the last 10 years.
| 1 month | 6 months | Year-To-Date | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | -5.04% | 3.97% | 11.69% | 19.60% | 7.98% | 9.78% |
| Warren Buffett's 90/10 Portfolio | -4.52% | 4.26% | 11.89% | 19.60% | 9.12% | 10.85% |
| Portfolio components: | ||||||
BSV Vanguard Short-Term Bond ETF | -0.54% | -0.94% | 1.17% | 2.40% | 1.10% | 1.02% |
VOO Vanguard S&P 500 ETF | -4.95% | 4.81% | 13.09% | 21.61% | 9.83% | 11.85% |
| Returns over 1 year are annualized | ||||||
Monthly Returns Heatmap
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 3.53% | 1.47% | 0.39% | 5.81% | 3.00% | -1.45% | -4.30% |
Dividend yield
Warren Buffett's 90/10 Portfolio granted a 1.66% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Warren Buffett's 90/10 Portfolio | 1.66% | 1.69% | 1.30% | 1.64% | 2.04% | 2.23% | 1.95% | 2.21% | 2.34% | 2.13% | 2.16% | 2.59% |
| Portfolio components: | ||||||||||||
BSV Vanguard Short-Term Bond ETF | 2.37% | 1.52% | 1.50% | 1.87% | 2.44% | 2.17% | 1.83% | 1.68% | 1.61% | 1.68% | 1.75% | 1.92% |
VOO Vanguard S&P 500 ETF | 1.59% | 1.71% | 1.28% | 1.61% | 2.00% | 2.23% | 1.97% | 2.27% | 2.42% | 2.18% | 2.20% | 2.66% |
Expense Ratio
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.
Risk-Adjusted Performance
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 | Ulcer Index | |
|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond ETF | 0.63 | ||||
VOO Vanguard S&P 500 ETF | 1.17 |
Asset Correlations Table
| BSV | VOO | |
|---|---|---|
| BSV | 1.00 | -0.13 |
| VOO | -0.13 | 1.00 |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below shows the maximum drawdowns of the Warren Buffett's 90/10 Portfolio. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.
The maximum drawdown since January 2010 for the Warren Buffett's 90/10 Portfolio is 30.73%, recorded on Mar 23, 2020. It took 95 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -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 |
Volatility Chart
The current Warren Buffett's 90/10 Portfolio volatility is 2.86%, 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.