I was just making the point that Buffett did not consider his advice only for the trustee of his wife's assets. As an aggressive portfolio for someone in the accumulation stage, 90/10 seems perfectly reasonable (it is more aggressive than I like for me).I agree. Anyone will do fine with that (if they can stay the course.) They'll also do fine with 80/20 and 95/5 and using that 10% in a MMF or putting that 90% into VT or VTI instead etc. I'll bet Warren would agree. Meanwhile, Bogleheads upthread and trying to figure out exactly what Warren meant and trying to decide if they have to buy T bills directly.
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this is the relevant paragraph from the interview:Italics mine. I mean, that's not much detail, but it is an explicit statement that the portfolio has wider applicability than just his situation.And I've been-- part of it goes outright, part of it goes to a trustee. But I've told the
trustee to put 90% of it in an S&P 500 index fund and 10% in short-term governments.
And the reason for the 10% in short-term governments is that if there's a terrible period
in the market and she's withdrawing 3% or 4% a year you take it out of that instead of
selling stocks at the wrong time. She'll do fine with that. And anybody will do fine with
that. It's low-cost, it's in a bunch of wonderful businesses and it takes care of itself.
As you say, and I as said, there is no other detail. Any inference beyond "90/10 S&P 500 and treasuries is a good thing" is simply making stuff up. I also think that Buffett has little experience dealing with the personal finances of non-very rich people.
Statistics: Posted by TN_Boy — Fri Aug 09, 2024 11:51 am — Replies 185 — Views 22551
