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Warren Buffett's 90/10 Portfolio - + Global

Last updated Dec 9, 2023

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


BSV 8%VOO 87%ACWI 5%BondBondEquityEquity
PositionCategory/SectorWeight
BSV
Vanguard Short-Term Bond ETF
Total Bond Market8%
VOO
Vanguard S&P 500 ETF
Large Cap Growth Equities87%
ACWI
iShares MSCI ACWI ETF
Large Cap Growth Equities5%

Performance

The chart shows the growth of an initial investment of $10,000 in Warren Buffett's 90/10 Portfolio - + Global, 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


280.00%300.00%320.00%340.00%360.00%JulyAugustSeptemberOctoberNovemberDecember
369.94%
316.99%
Warren Buffett's 90/10 Portfolio - + Global
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Sep 9, 2010, corresponding to the inception date of VOO

Returns

As of Dec 9, 2023, the Warren Buffett's 90/10 Portfolio - + Global returned 20.06% Year-To-Date and 10.92% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
N/AN/AN/AN/AN/AN/A
Warren Buffett's 90/10 Portfolio - + Global20.06%4.23%7.30%17.45%12.68%11.08%
BSV
Vanguard Short-Term Bond ETF
3.41%1.19%1.92%3.18%1.38%1.21%
VOO
Vanguard S&P 500 ETF
21.81%5.29%7.89%18.08%13.75%11.91%
ACWI
iShares MSCI ACWI ETF
17.48%5.23%5.41%14.50%10.10%7.92%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
20230.33%5.92%3.07%-1.55%-4.38%-2.01%8.55%

Sharpe Ratio

The current Warren Buffett's 90/10 Portfolio - + Global Sharpe ratio is 1.40. A Sharpe ratio greater than 1.0 is considered acceptable.

-1.000.001.002.003.001.40

The Sharpe ratio of Warren Buffett's 90/10 Portfolio - + Global lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio0.000.501.001.50JulyAugustSeptemberOctoberNovemberDecember
1.40
1.25
Warren Buffett's 90/10 Portfolio - + Global
Benchmark (^GSPC)
Portfolio components

Dividend yield

Warren Buffett's 90/10 Portfolio - + Global granted a 1.55% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Warren Buffett's 90/10 Portfolio - + Global1.55%1.68%1.29%1.56%1.94%2.06%1.78%1.98%2.07%1.84%1.81%2.13%
BSV
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%
VOO
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%
ACWI
iShares MSCI ACWI ETF
1.65%1.79%1.71%1.43%2.33%2.25%1.94%2.19%2.56%2.26%1.89%2.24%

Expense Ratio

The Warren Buffett's 90/10 Portfolio - + Global has an expense ratio of 0.05% 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.


0.32%
0.00%2.15%
0.04%
0.00%2.15%
0.03%
0.00%2.15%

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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
BSV
Vanguard Short-Term Bond ETF
0.86
VOO
Vanguard S&P 500 ETF
1.40
ACWI
iShares MSCI ACWI ETF
1.18

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

BSVACWIVOO
BSV1.00-0.10-0.13
ACWI-0.101.000.95
VOO-0.130.951.00

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%-2.00%JulyAugustSeptemberOctoberNovemberDecember
-1.05%
-4.01%
Warren Buffett's 90/10 Portfolio - + Global
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Warren Buffett's 90/10 Portfolio - + Global. 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 - + Global was 31.35%, occurring on Mar 23, 2020. Recovery took 95 trading sessions.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-31.35%Feb 20, 202023Mar 23, 202095Aug 6, 2020118
-23.23%Jan 4, 2022195Oct 12, 2022
-17.72%Sep 21, 201865Dec 24, 201870Apr 5, 2019135
-17.5%May 2, 2011108Oct 3, 201185Feb 3, 2012193
-12.09%May 22, 2015183Feb 11, 201645Apr 18, 2016228

Volatility Chart

The current Warren Buffett's 90/10 Portfolio - + Global volatility is 2.58%, 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.


2.00%2.50%3.00%3.50%4.00%4.50%5.00%JulyAugustSeptemberOctoberNovemberDecember
2.58%
2.77%
Warren Buffett's 90/10 Portfolio - + Global
Benchmark (^GSPC)
Portfolio components
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