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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."

Expense Ratio

Rank 12 of 53

0.03%
0.00%0.94%
Dividend Yield

Rank 37 of 53

1.30%
0.00%2.74%
10Y Annualized Return

Rank 12 of 53

14.76%
4.75%40.27%
Sharpe Ratio

Rank 6 of 53

2.43
0.522.76
Maximum Drawdown

Rank 43 of 53

-30.73%
-38.24%-10.21%

Warren Buffett's 90/10 PortfolioAsset Allocation


BSV 10%VOO 90%BondBondEquityEquity
S&P 500

Warren Buffett's 90/10 PortfolioPerformance

The chart shows the growth of $10,000 invested in Warren Buffett's 90/10 Portfolio on Sep 10, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $43,741 for a total return of roughly 337.41%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


Warren Buffett's 90/10 Portfolio
Benchmark (S&P 500)
Portfolio components

Warren Buffett's 90/10 PortfolioReturns

As of Sep 18, 2021, the Warren Buffett's 90/10 Portfolio returned 17.23% Year-To-Date and 14.76% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Warren Buffett's 90/10 Portfolio-0.25%12.53%17.23%29.21%16.38%14.76%
BSV
Vanguard Short-Term Bond ETF
-0.03%0.45%-0.18%0.12%2.17%1.73%
VOO
Vanguard S&P 500 ETF
-0.28%13.90%19.26%32.77%17.87%16.16%

Warren Buffett's 90/10 PortfolioSharpe Ratio Chart

The Sharpe ratio shows whether the portfolio's excess returns are due to smart investment decisions or a result of taking a higher risk. The higher a portfolio's Sharpe ratio, the better its risk-adjusted performance.

The current Warren Buffett's 90/10 Portfolio Sharpe ratio is 2.43. A Sharpe ratio higher than 2.0 is considered very good.

The chart below displays rolling 12-month Sharpe Ratio.


Warren Buffett's 90/10 Portfolio
Benchmark (S&P 500)
Portfolio components

Warren Buffett's 90/10 PortfolioDividends

Warren Buffett's 90/10 Portfolio granted a 1.30% dividend yield in the last twelve months, as of Sep 18, 2021.


PeriodTTM20202019201820172016201520142013201220112010

Dividend yield

1.30%1.57%1.92%2.05%1.77%1.96%2.03%1.31%1.80%2.09%2.10%1.11%

Warren Buffett's 90/10 PortfolioDrawdowns Chart

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


Warren Buffett's 90/10 Portfolio
Benchmark (S&P 500)
Portfolio components

Warren Buffett's 90/10 PortfolioWorst 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, 202023Mar 23, 202095Aug 6, 2020118
-17.42%Sep 21, 201865Dec 24, 201870Apr 5, 2019135
-16.84%May 2, 2011108Oct 3, 201185Feb 3, 2012193
-11.52%Jul 21, 2015143Feb 11, 201645Apr 18, 2016188
-9.15%Jan 29, 20189Feb 8, 2018115Jul 25, 2018124
-8.65%Apr 3, 201243Jun 4, 201251Aug 15, 201294
-8.64%Sep 3, 202014Sep 23, 202035Nov 11, 202049
-6.66%Sep 17, 201242Nov 15, 201231Jan 2, 201373
-6.49%Sep 19, 201420Oct 16, 201411Oct 31, 201431
-5.88%May 6, 201920Jun 3, 201913Jun 20, 201933

Warren Buffett's 90/10 PortfolioVolatility Chart

Current Warren Buffett's 90/10 Portfolio volatility is 0.71%. 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.


Warren Buffett's 90/10 Portfolio
Benchmark (S&P 500)
Portfolio components

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