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Warren Buffett Index Fund Portfolio (Static Portfolio)
live (public) 0.10% May 17
This portfolio is also called Warren Buffett Index Portfolio (90/10) or Warren Buffett ETF Portfolio (90/10), a strategy inspired by the investment principles outlined by Warren Buffett himself. In a letter to Berkshire Hathaway investors in 2013, Buffett revealed his instructions for the trustee of his wife's inheritance. According to his guidance, 90% of the funds were to be allocated to a low-fee stock index fund, while the remaining 10% would be invested in short-term government bonds.
The Warren Buffett Index or ETF Portfolio (90/10) is designed to offer a straightforward and passive approach to investing. By allocating a significant portion of the portfolio to a low-fee stock index fund, investors can capture the long-term growth potential of the stock market. Index funds aim to replicate the performance of a specific market index, such as the S&P 500, providing broad exposure to a diverse range of companies.
The choice of a low-fee stock index fund aligns with Buffett's emphasis on keeping costs low. By opting for funds with minimal expense ratios, investors can maximize their returns over the long run. Low fees ensure that a larger portion of the investment's performance directly benefits the portfolio, rather than being eroded by high costs.
In addition to the stock index fund, the portfolio also includes a 10% allocation to short-term government bonds. This allocation provides a conservative and stable component to the portfolio. Short-term government bonds are typically considered low-risk investments and can act as a hedge against market volatility.
The 90/10 allocation reflects Buffett's belief in the long-term growth potential of the stock market, while also acknowledging the importance of preserving capital through more conservative investments. This balance allows investors to participate in the market's potential upside while maintaining a level of stability.
The portfolio is suitable for anyone's long term investment portfolio as long as one is prepared for the investment that will not be tapped for a long time, preferrably over more than 20 years.
Asset Allocation
The portfolio consists of the following
Stocks VFINX 90%
Bonds VFISX 10%
It's simulated from 10/30/1991
ETF and Other Fund Substitutes
Substitute
VFINX to VOO, SPY, VTI
VFISX to SHY, USFR, TFLO
| Asset | Fund in this portfolio | Price change* | Percentage |
|---|---|---|---|
| Stocks | VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) | 0.12% | 91.82% |
| Bonds | VFISX (VANGUARD SHORT-TERM TREASURY FUND INVESTOR SHARES) | 0.10% | 8.18% |
* Day change on 05/17/2024.
Previous
Since 10/30/1991
| Name | YTD* Return |
1Yr AR** |
3Yr AR** |
5Yr AR** |
10Yr AR** |
15Yr AR** |
|---|---|---|---|---|---|---|
| Warren Buffett Index Fund Portfolio | 11.0% | 27.4% | 9.3% | 13.7% | 11.8% | 13.5% |
| VFINX (Vanguard (S&P 500) Index) | 11.7% | 29.3% | 9.9% | 15.0% | 12.9% | 14.8% |
| VBINX (Vanguard Balance (60% stocks/40% bonds) | 6.0% | 17.4% | 3.9% | 8.6% | 8.0% | 9.8% |
* YTD: Year to Date
** AR: Annualized Return
| Last 1 Week* | YTD*(2024) | 1 Yr | 3 Yr | 5 Yr | 10 Yr | 15 Yr | 20 Yr | Since 10/30/1991 |
2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | 1996 | 1995 | 1994 | 1993 | 1992 | 1991 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annualized Return(%) | 1.5 | 11.0 | 27.4 | 9.3 | 13.7 | 11.8 | 13.5 | 9.6 | 9.8 | 24.2 | -16.9 | 25.8 | 16.8 | 28.3 | -3.9 | 19.5 | 10.7 | 1.2 | 12.3 | 28.9 | 14.3 | 2.0 | 13.7 | 23.8 | -32.7 | 5.7 | 14.5 | 4.5 | 9.8 | 25.8 | -19.4 | -9.6 | -7.4 | 19.2 | 26.5 | 30.5 | 21.0 | 34.8 | 1.0 | 8.8 | 8.0 | 6.4 |
| Sharpe Ratio | NA | 0.91 | 2.24 | 0.45 | 0.64 | 0.67 | NA | NA | 0.5 | 1.68 | -0.85 | 2.13 | 0.54 | 2.4 | -0.34 | 3.12 | 0.9 | 0.08 | 1.19 | 2.86 | 1.24 | 0.09 | 0.83 | 0.98 | -0.95 | 0.19 | 1.23 | 0.25 | 0.88 | 1.64 | -0.9 | -0.63 | -0.57 | 0.97 | 1.26 | 1.62 | 1.62 | 4.34 | -0.22 | 0.86 | 0.64 | 0.4 |
| Draw Down(%) | NA | 5.0 | 9.1 | 22.7 | 30.6 | 30.6 | NA | NA | 50.1 | 9.1 | 22.7 | 4.8 | 30.6 | 5.9 | 17.5 | 2.3 | 9.1 | 10.9 | 6.6 | 5.2 | 8.7 | 17.0 | 14.2 | 24.3 | 43.0 | 8.7 | 6.7 | 6.3 | 6.8 | 12.3 | 29.4 | 25.5 | 14.7 | 10.8 | 17.5 | 10.0 | 6.8 | 2.3 | 7.9 | 4.3 | 5.0 | 4.9 |
| Standard Deviation(%) | NA | 10.5 | 10.6 | 15.6 | 19.1 | 15.9 | NA | NA | 16.3 | 11.9 | 21.7 | 12.1 | 30.7 | 11.2 | 15.4 | 6.1 | 11.7 | 13.9 | 10.3 | 10.1 | 11.5 | 21.0 | 16.3 | 24.1 | 35.5 | 14.3 | 9.1 | 9.3 | 10.0 | 15.3 | 22.8 | 18.9 | 20.0 | 16.5 | 18.4 | 16.7 | 10.8 | 7.1 | 9.0 | 7.8 | 8.8 | 14.8 |
| Treynor Ratio | NA | 0.11 | 0.26 | 0.08 | 0.14 | 0.16 | NA | NA | 0.53 | 0.22 | -0.2 | 0.28 | 0.19 | 0.3 | -0.35 | -1.6 | -1.34 | 0.24 | -13.5 | -5.22 | 6.87 | -0.19 | -2.96 | -2.42 | 2.52 | -0.17 | 106.12 | -0.26 | 60.41 | -2.0 | 8.33 | -8.29 | -28.63 | 785.29 | -7.84 | -8.39 | 1.27 | 47.83 | -0.63 | 1.54 | -1.88 | 0.27 |
| Alpha | NA | 0.01 | 0.01 | 0.0 | 0.01 | 0.02 | NA | NA | 0.03 | 0.01 | 0.0 | 0.0 | 0.01 | 0.01 | -0.01 | 0.08 | 0.05 | 0.01 | 0.05 | 0.11 | 0.05 | 0.02 | 0.06 | 0.11 | -0.16 | 0.02 | 0.04 | 0.01 | 0.04 | 0.1 | -0.08 | -0.04 | -0.04 | 0.06 | 0.09 | 0.1 | 0.05 | 0.1 | -0.01 | 0.03 | 0.02 | 0.11 |
| Beta | NA | 0.91 | 0.91 | 0.9 | 0.89 | 0.67 | NA | NA | 0.15 | 0.91 | 0.9 | 0.91 | 0.89 | 0.9 | 0.15 | -0.12 | -0.08 | 0.05 | -0.01 | -0.06 | 0.02 | -0.1 | -0.05 | -0.1 | -0.13 | -0.16 | 0.0 | -0.09 | 0.0 | -0.13 | -0.02 | 0.01 | 0.0 | 0.0 | -0.03 | -0.03 | 0.14 | 0.01 | 0.03 | 0.04 | -0.03 | 0.22 |
| RSquared | NA | 1.0 | 1.0 | 1.0 | 1.0 | 0.56 | NA | NA | 0.03 | 1.0 | 1.0 | 0.98 | 1.0 | 1.0 | 0.03 | 0.02 | 0.01 | 0.0 | 0.0 | 0.0 | 0.0 | 0.01 | 0.0 | 0.01 | 0.02 | 0.03 | 0.0 | 0.01 | 0.0 | 0.02 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.02 | 0.0 | 0.0 | 0.0 | 0.0 | 0.06 |
| Sortino Ratio | NA | 1.43 | 3.43 | 0.63 | 0.87 | 0.93 | NA | NA | 0.7 | 2.55 | -1.15 | 3.12 | 0.72 | 3.45 | -0.44 | 4.9 | 1.27 | 0.11 | 1.66 | 4.32 | 1.87 | 0.13 | 1.18 | 1.42 | -1.26 | 0.25 | 1.86 | 0.35 | 1.27 | 2.51 | -1.27 | -0.87 | -0.8 | 1.44 | 1.77 | 2.34 | 2.3 | 7.3 | -0.29 | 1.25 | 0.94 | 0.61 |
| Yield(%) | N/A | 0.75 | 2.62 | 1.86 | 1.88 | 1.9 | N/A | N/A | 2.27 | 2.38 | 1.32 | 1.39 | 1.74 | 2.32 | 1.84 | 1.93 | 2.07 | 1.86 | 1.85 | 2.03 | 2.2 | 1.86 | 2.0 | 2.59 | 2.08 | 2.18 | 2.08 | 1.93 | 1.98 | 1.97 | 1.58 | 1.51 | 1.46 | 2.43 | 2.31 | 3.08 | 2.97 | 3.53 | 3.36 | 3.05 | 3.34 | 1.69 |
| Dividend Growth(%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
*: NOT annualized;YTD: Year to Date
**Inception: starting from 10/30/1991
| Asset Allocation Strategy | Rebalance for Static Portfolios |
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