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
Performance Chart
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
Returns By Period
As of Nov 21, 2024, the Warren Buffett's 90/10 Portfolio returned 23.17% Year-To-Date and 12.07% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y (annualized) | 10Y (annualized) | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 24.05% | 1.08% | 11.50% | 30.38% | 13.77% | 11.13% |
| Warren Buffett's 90/10 Portfolio | 23.17% | 1.04% | 11.28% | 29.37% | 14.24% | 12.07% |
| Portfolio components: | ||||||
BSV Vanguard Short-Term Bond ETF | 3.27% | -0.33% | 3.10% | 5.49% | 1.23% | 1.57% |
VOO Vanguard S&P 500 ETF | 25.52% | 1.19% | 12.21% | 32.23% | 15.58% | 13.15% |
Monthly Returns
The table below presents the monthly returns of Warren Buffett's 90/10 Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 1.48% | 4.62% | 3.01% | -3.68% | 4.60% | 3.28% | 1.19% | 2.26% | 2.05% | -0.96% | 23.17% | ||
| 2023 | 5.78% | -2.37% | 3.53% | 1.47% | 0.39% | 5.81% | 3.00% | -1.45% | -4.32% | -1.95% | 8.41% | 4.30% | 24.08% |
| 2022 | -4.82% | -2.73% | 3.18% | -7.99% | 0.31% | -7.47% | 8.37% | -3.87% | -8.49% | 7.27% | 5.12% | -5.21% | -16.86% |
| 2021 | -0.93% | 2.45% | 4.11% | 4.79% | 0.62% | 2.03% | 2.24% | 2.66% | -4.24% | 6.27% | -0.67% | 4.11% | 25.56% |
| 2020 | 0.06% | -7.19% | -11.07% | 11.57% | 4.35% | 1.69% | 5.34% | 6.31% | -3.43% | -2.31% | 9.86% | 3.41% | 17.36% |
| 2019 | 7.20% | 2.96% | 1.83% | 3.65% | -5.65% | 6.34% | 1.32% | -1.37% | 1.75% | 2.01% | 3.26% | 2.71% | 28.57% |
| 2018 | 4.98% | -3.40% | -2.20% | 0.29% | 2.21% | 0.69% | 3.21% | 2.94% | 0.51% | -6.15% | 1.72% | -7.80% | -3.77% |
| 2017 | 1.63% | 3.51% | 0.13% | 0.98% | 1.29% | 0.56% | 1.89% | 0.30% | 1.81% | 2.09% | 2.73% | 1.16% | 19.60% |
| 2016 | -4.34% | -0.15% | 6.19% | 0.32% | 1.56% | 0.39% | 3.34% | 0.08% | 0.04% | -1.64% | 3.25% | 1.88% | 11.06% |
| 2015 | -2.49% | 4.95% | -1.37% | 0.90% | 1.14% | -1.77% | 1.97% | -5.54% | -2.14% | 7.61% | 0.36% | -1.58% | 1.37% |
| 2014 | -3.13% | 4.11% | 0.76% | 0.68% | 2.11% | 1.88% | -1.26% | 3.61% | -1.26% | 2.20% | 2.51% | -0.29% | 12.32% |
| 2013 | 4.66% | 1.22% | 3.28% | 1.91% | 2.04% | -1.41% | 4.81% | -2.81% | 3.11% | 4.05% | 2.73% | 2.34% | 28.88% |
Expense Ratio
Warren Buffett's 90/10 Portfolio has an expense ratio of 0.03%, which is considered low compared to other funds. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current risk-adjusted rank of Warren Buffett's 90/10 Portfolio is 77, placing it in the top 23% of portfolios on our website in terms of risk-adjusted performance. This ranking is based on the combined values of the indicators listed below.
Risk-Adjusted Performance Indicators
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 | Martin ratio | |
|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond ETF | 2.19 | 3.36 | 1.42 | 1.33 | 9.05 |
VOO Vanguard S&P 500 ETF | 2.62 | 3.50 | 1.49 | 3.78 | 17.12 |
Dividends
Dividend yield
Warren Buffett's 90/10 Portfolio provided a 1.45% dividend yield over the last twelve months.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 1.45% | 1.56% | 1.67% | 1.27% | 1.57% | 1.92% | 2.05% | 1.77% | 1.96% | 2.03% | 1.81% | 1.80% |
| Portfolio components: | ||||||||||||
BSV Vanguard Short-Term Bond ETF | 3.26% | 2.46% | 1.50% | 1.45% | 1.79% | 2.29% | 1.99% | 1.65% | 1.49% | 1.40% | 1.45% | 1.48% |
VOO Vanguard S&P 500 ETF | 1.25% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
Worst Drawdowns
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.
The current Warren Buffett's 90/10 Portfolio drawdown is 1.23%.
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 | 294 | Dec 13, 2023 | 489 |
| -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
Volatility Chart
The current Warren Buffett's 90/10 Portfolio volatility is 3.69%, 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.
Diversification
Asset Correlations Table
| BSV | VOO | |
|---|---|---|
| BSV | 1.00 | -0.10 |
| VOO | -0.10 | 1.00 |