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Warren Buffett's 90/10 Portfolio
Performance
Return for Risk
Dividends
Drawdowns
Volatility
Diversification

Warren Buffett's 90/10 Portfolio

Currency in USD · Last updated Jun 5, 2026

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 10.00%VOO 90.00%BondBondEquityEquity
PositionCategory/SectorTarget Weight
VOO
Vanguard S&P 500 ETF		S&P 500
90%
BSV
Vanguard Short-Term Bond Index Fund ETF Shares		Short-Term Bond
10%

S&P 500 Index

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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 Every 3 months.

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Returns By Period

As of Jun 5, 2026, the Warren Buffett's 90/10 Portfolio returned 7.73% Year-To-Date and 13.97% of annualized return in the last 10 years.

Position1D1MYTD6M1Y3Y*5Y*10Y*
Benchmark
S&P 500 Index
-2.64%0.25%7.86%7.47%————
Portfolio
Warren Buffett's 90/10 Portfolio
-2.40%0.42%7.73%7.53%23.63%19.81%12.27%13.97%
Portfolio components:
BSV
Vanguard Short-Term Bond Index Fund ETF Shares		-0.26%-0.36%0.11%0.49%3.38%4.36%1.58%1.93%
VOO
Vanguard S&P 500 ETF		-2.59%0.50%8.45%8.18%25.87%21.52%13.39%15.23%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Monthly Returns

Based on dividend-adjusted daily data since Sep 10, 2010, Warren Buffett's 90/10 Portfolio's average daily return is +0.06%, while the average monthly return is +1.13%. At this rate, an investment would double in approximately 5.1 years.

Historically, 69% of months were positive and 31% were negative. The best month was Apr 2020 with a return of +11.6%, while the worst month was Mar 2020 at -11.1%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 5 months.

On a daily basis, Warren Buffett's 90/10 Portfolio closed higher 55% of trading days. The best single day was Mar 24, 2020 with a return of +8.3%, while the worst single day was Mar 16, 2020 at -10.4%.

JanFebMarAprMayJunJulAugSepOctNovDecTotal
20261.32%-0.66%-4.56%9.54%4.82%-2.33%7.73%
20252.47%-1.04%-4.99%-0.64%5.62%4.75%2.05%1.98%3.23%2.19%0.25%0.10%16.68%
20241.48%4.62%3.01%-3.68%4.60%3.28%1.19%2.26%2.05%-0.96%5.35%-2.12%22.74%
20235.78%-2.37%3.53%1.47%0.39%5.81%3.00%-1.45%-4.32%-1.95%8.41%4.30%24.09%
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%

Benchmark Metrics

Warren Buffett's 90/10 Portfolio has an annualized alpha of 1.66%, beta of 0.90, and R2 of 1.00 versus S&P 500 Index. Calculated based on daily prices since September 10, 2010.

  • This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (93.48%) than losses (88.00%) - typical of diversified or defensive assets.
  • With beta of 0.90 and R2 of 1.00, this portfolio moves broadly in line with S&P 500 Index - much of its variation is explained by market exposure rather than independent behavior.
Alpha
1.66%
Beta
0.90
R²
1.00
Upside Capture
93.48%
Downside Capture
88.00%

Expense Ratio

Warren Buffett's 90/10 Portfolio has an expense ratio of 0.03%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.

BSV
Vanguard Short-Term Bond Index Fund ETF Shares
VOO
Vanguard S&P 500 ETF

Return for Risk

Risk / Return Rank

Warren Buffett's 90/10 Portfolio ranks 58 for risk / return — on par with similar Portfolios. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.

Warren Buffett's 90/10 Portfolio Risk / Return Rank: 5858
Overall Rank
Warren Buffett's 90/10 Portfolio Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
Warren Buffett's 90/10 Portfolio Sortino Ratio Rank: 5656
Sortino Ratio Rank
Warren Buffett's 90/10 Portfolio Omega Ratio Rank: 5959
Omega Ratio Rank
Warren Buffett's 90/10 Portfolio Calmar Ratio Rank: 5353
Calmar Ratio Rank
Warren Buffett's 90/10 Portfolio Martin Ratio Rank: 6767
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

Return / Risk — by metrics

The table below presents risk-adjusted performance metrics for Warren Buffett's 90/10 Portfolio and compares them with S&P 500 Index.

PortfolioBenchmarkDifference
Sharpe ratioReturn per unit of total volatility

2.17

—

—

Sortino ratioReturn per unit of downside risk

2.94

—

—

Omega ratioGain probability vs. loss probability

1.40

—

—

Calmar ratioReturn relative to maximum drawdown

2.96

—

—

Martin ratioReturn relative to average drawdown

13.77

—

—

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.

PositionRisk / Return RankSharpe ratioSortino ratioOmega ratioCalmar ratioMartin ratio
BSV
Vanguard Short-Term Bond Index Fund ETF Shares		581.872.961.352.639.17
VOO
Vanguard S&P 500 ETF		662.152.891.392.9213.53

Sharpe Ratio

The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.

Warren Buffett's 90/10 Portfolio Sharpe ratios as of Jun 5, 2026 (values are recalculated daily):

  • 1-Year: 2.17
  • 5-Year: 0.81
  • 10-Year: 0.87
  • All Time: 0.90

These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns (including price changes and dividends).

Compared to the broad market, where average Sharpe ratios range from 1.84 to 2.81, this portfolio's current Sharpe ratio falls between the 25th and 75th percentiles. This indicates that its risk-adjusted performance is in line with the majority of portfolios, suggesting a balanced approach to risk and return—likely suitable for a wide range of investors.

The chart below shows the rolling Sharpe ratio of Warren Buffett's 90/10 Portfolio compared to the selected benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.

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Dividends

Dividend yield

Warren Buffett's 90/10 Portfolio provided a 1.35% dividend yield over the last twelve months.

PositionTTM20252024202320222021202020192018201720162015
Portfolio1.35%1.40%1.46%1.56%1.67%1.27%1.57%1.92%2.05%1.77%1.96%2.03%
Portfolio components:
BSV
Vanguard Short-Term Bond Index Fund ETF Shares		4.00%3.83%3.38%2.46%1.50%1.45%1.79%2.29%1.99%1.65%1.48%1.40%
VOO
Vanguard S&P 500 ETF		1.05%1.13%1.24%1.46%1.69%1.25%1.54%1.88%2.06%1.78%2.02%2.10%

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.

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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 0.29%.

Related event

Drawdown

Fall

Recovery

Underwater

COVID crash2020
-30.73%Mar 2020
1mo 2d4mo 16d
5mo 18dFeb 2020 - Aug 2020
Bear market2022
-22.78%Oct 2022
9mo 11d1y 2mo
1y 11moJan 2022 - Dec 2023
Rate-hike selloffLate 2018
-17.42%Dec 2018
3mo 4d3mo 12d
6mo 16dSep 2018 - Apr 2019
2011 correction2011
-16.84%Oct 2011
5mo 4d4mo 3d
9mo 7dMay 2011 - Feb 2012
2025 selloff2025
-16.81%Apr 2025
1mo 17d2mo 19d
4mo 6dFeb 2025 - Jun 2025

Volatility

Volatility Chart

The chart below shows the rolling one-month volatility.

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Diversification

Diversification Metrics

Number of Effective Assets

The portfolio contains 2 assets, with an effective number of assets of 1.22, reflecting the diversification based on asset allocation. Your allocation shows noticeable concentration: a few holdings carry significantly more weight than the rest. Rebalancing toward more even weights — or adding less correlated assets — could reduce risk.

Diversification Ratio
1Y
3Y
5Y
10Y
All Time
Diversification Ratio

1.01

1.02

1.02

1.01

1.01

The portfolio has a diversification ratio of 1.01, placing it in the bottom quartile across portfolios — positions are highly correlated. Consider adding assets from different classes or sectors to reduce risk.

Warren Buffett's 90/10 Portfolio correlation to the S&P 500 Index

Warren Buffett's 90/10 Portfolio has a 1.00 correlation to S&P 500 Index over the trailing 12 months. This section compares each holding's correlation to the benchmark and to the portfolio.
Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

1.00

Correlation (3Y)
Calculated over the trailing 3-year period

1.00

Correlation (5Y)
Calculated over the trailing 5-year period

1.00

Correlation (10Y)
Calculated over the trailing 10-year period

1.00

Correlation (All Time)
Calculated using the full available price history since Sep 10, 2010

1.00

Benchmark Correlations

Correlation vs. S&P 500 Index. VOO has the highest benchmark correlation at 1.00, while BSV has the lowest at 0.25.

BSV
0.25
VOO
1.00

Portfolio Correlations

Correlation vs. Warren Buffett's 90/10 Portfolio. VOO has the highest portfolio correlation at 1.00, while BSV has the lowest at -0.07.

BSV
-0.07
VOO
1.00

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.
BSVVOO
BSV1.00-0.08
VOO-0.081.00
The correlation results are calculated based on daily price changes starting from Sep 10, 2010
Diversification Analysis

Find what Warren Buffett's 90/10 Portfolio is missing

See which holdings overlap, where Warren Buffett's 90/10 Portfolio is concentrated, and which low-correlation assets could fill the gaps.

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