![]() ![]() History has shown that indexing the S&P 500 is a solid investment, but I'd definitely prefer to see some allocation to international stocks, as they offer a diversification benefit since they don't move in perfect lockstep with U.S. The Warren Buffett Portfolio asset allocation is as follows: Estrada looked at 86 different 30-year intervals between 19, and found that at a typical 4% withdrawal rate in retirement, Buffett's 90/10 portfolio had an extremely low failure rate of only 2.3%, only slightly worse than the traditional “conservative” 60/40 stocks/bonds portfolio. Interestingly, recent research from Javier Estrada, professor of finance at the IESE Business School in Barcelona, Spain, suggests that Buffett's prescribed 90/10 asset allocation may actually not be as risky as it appears at first glance, at least in terms of survivability in retirement. Young investors almost certainly shouldn't be holding short bonds more on this later. More risk-averse investors will (and should) prefer a lower allocation to equities. Note that Buffett admits that this specific allocation may not be suitable for everyone. The Warren Buffett ETF Portfolio became famous when, in a 2013 letter to Berkshire Hathaway shareholders, Buffett indicated that upon his passing, the trustee of his estate will invest 90% of his wife's inheritance in a low-cost index fund and 10% in short-term government bonds. You can also find the famous collection of Warren Buffett's letters to shareholders over 30+ years here. The recent revised edition contains some great commentary by the legendary Jason Zweig. But if you're interested in his style of investing, he has stated that his favorite book is The Intelligent Investorby Benjamin Graham, an excellent introductory resource on Value investing. Warren Buffett himself has never actually written any books. Buffett is the first to admit that retail investors should keep it simple and invest in an S&P 500 index fund. He is arguably the most successful investor in history, among other things, consistently outperforming the market historically. Hopefully Warren Buffett needs no introduction. What Is the Warren Buffett ETF Portfolio? Sequence of Return Risk in Retirement Explained.The 4% Rule for Retirement Withdrawal Rate – A Revisitation.The 10 Best ETFs for Retirement Portfolios in 2023.M1 Borrow Review (How M1’s Margin Loan Works).8 Reasons Why I’m Not a Dividend Income Investor.How To Beat the Market Using Leverage and Index Investing.What Is a Leveraged ETF and How Do They Work?.The 5 Best Emerging Markets ETFs (1 From Vanguard) for 2023.The Best Vanguard Dividend Funds – 4 Popular ETFs.VYM – Comparing Vanguard’s 2 Popular Dividend ETF’s The 5 Best EV ETFs – Electric Vehicles ETFs.The 8 Best Small Cap ETFs (4 From Vanguard).VTI – Vanguard S&P 500 or Total Stock Market ETF? Paul Merriman Ultimate Buy and Hold Portfolio.Factor Investing and Factor ETFs – The Ultimate Guide.How To Invest Your HSA (Health Savings Account).Portfolio Diversification – How To Diversify Your Portfolio.How To Invest in an Index Fund – The Best Index Funds.What Is the Stock Market? How It Works & How to Invest in It.Beginners Start Here – 10 Steps To Start Building Wealth. ![]()
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