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 $10,000 invested in Warren Buffett's 90/10 Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $41,880 for a total return of roughly 318.80%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Returns
As of Apr 1, 2023, the Warren Buffett's 90/10 Portfolio returned 6.92% Year-To-Date and 11.22% of annualized return in the last 10 years.
| 1 month | Year-To-Date | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | 3.51% | 7.03% | 12.88% | -10.71% | 9.25% | 10.16% |
| Warren Buffett's 90/10 Portfolio | 3.53% | 6.92% | 12.70% | -8.24% | 10.32% | 11.22% |
| Portfolio components: | ||||||
BSV Vanguard Short-Term Bond ETF | 1.92% | 1.94% | 3.01% | -0.21% | 1.31% | 1.09% |
VOO Vanguard S&P 500 ETF | 3.71% | 7.48% | 13.81% | -9.25% | 11.14% | 12.26% |
| Returns over 1 year are annualized | ||||||
Dividends
Warren Buffett's 90/10 Portfolio granted a 1.96% dividend yield in the last twelve months.
| Period | TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 1.96% | 1.68% | 1.29% | 1.62% | 2.03% | 2.21% | 1.94% | 2.19% | 2.32% | 2.11% | 2.14% | 2.59% |
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 |
| -9.15% | Jan 29, 2018 | 9 | Feb 8, 2018 | 115 | Jul 25, 2018 | 124 |
| -8.65% | Apr 3, 2012 | 43 | Jun 4, 2012 | 51 | Aug 15, 2012 | 94 |
| -8.64% | Sep 3, 2020 | 14 | Sep 23, 2020 | 35 | Nov 11, 2020 | 49 |
| -6.65% | Sep 17, 2012 | 42 | Nov 15, 2012 | 31 | Jan 2, 2013 | 73 |
| -6.49% | Sep 19, 2014 | 20 | Oct 16, 2014 | 11 | Oct 31, 2014 | 31 |
Volatility Chart
Current Warren Buffett's 90/10 Portfolio volatility is 5.32%. The chart below shows the rolling 10-day volatility. Volatility is a statistical measure showing how big price swings are in either direction. The higher asset volatility, the riskier it is, because the price movements are less predictable.