Buffett’s Asset Allocation Advice: Take It … with a Twist

  title={Buffett’s Asset Allocation Advice: Take It … with a Twist},
  author={Javier Estrada},
  journal={The Journal of Wealth Management},
  • Javier Estrada
  • Published 31 January 2016
  • Economics
  • The Journal of Wealth Management
One of the most important decisions retirees face is theasset allocation of their portfolios. They can have a staticor a dynamic allocation, and simplicity usually favors the former. Warren Buffett recently added another vote for static allocations by revealing that he had advised a trustee to split the bequest his wife will receive to 90% in stocksand 10% in short-term bonds. The evidence discussed here shows that, relative to other static allocations, a 90/10 splithas a very low failure rate… 
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