Warren Buffett’s 90/10 rule is a simple, long-term investment strategy directing that 90% of assets be invested in a low-cost S&P 500 index fund and 10% in short-term government bonds. Originally outlined in his 2013 letter to shareholders for his wife's trust, this approach maximizes growth through equity exposure while providing safety, liquidity, and minimal fees.
A 90/10 is not maintainable (from a behavioral standpoint) by a very large portion of individual investors. Therefore it is appropriate to ``bash'' this harmful ``one-size-fits-all'' strategy without recommending an alternate formulaic approach.
Warren Buffett's 90/10 strategy involves allocating 90% of assets to a low-cost S&P 500 index fund and 10% to short-term government bonds. The 90/10 rule offers simplicity, lower fees, and the potential for higher returns.
Between 1926 and 2022, a 90/10 portfolio produced average returns of 9.9%. By comparison, an evenly split 50/50 portfolio produced returns of 8.1%, a significantly lower amount.
New to investing here. Andrew Hallman's ``Millionaire teacher'' suggests allocating bonds equivalent to your age. So for a 32 year old, the portfolio should be 32% bonds and 68% stocks. He does suggest age-10 or age-20 if one is ready for more risk.
A 70-year-old, for example, would keep 30% of their portfolio in stocks and the rest in safer investments like bonds and savings accounts. But with longer life expectancies and rising costs, many experts now suggest a more growth-oriented formula: the “120 minus age” rule.
Only a small percentage of Americans retire with $1 million or more in retirement savings, with figures from the Federal Reserve and Employee Benefit Research Institute (EBRI) showing around 3.2% of retirees hitting that mark, though some sources cite slightly lower numbers for all Americans (around 2.5%) or higher estimates for households nearing retirement (over 10% of older households have $1M+ net worth, not just retirement funds). The reality is most retirees have significantly less, with the median for ages 65-74 being around $200,000-$609,000 in retirement accounts.
Generally, the 90/10 allocation is considered aggressive and is not suitable for conservative investors. Conservative investors typically prioritize capital preservation over potential growth and may find the strategy too risky or volatile.
Warren Buffett's #1 rule of investing is famously simple and stark: "Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.". This principle emphasizes capital preservation and avoiding significant losses, suggesting that protecting your principal is more crucial for long-term wealth building than chasing high, risky returns. It means focusing on buying good businesses at fair prices, understanding what you invest in, and being disciplined to prevent large, permanent losses, even if it means missing out on some fast gains.
Warren Buffett turned a $40 billion Apple investment into $150+ billion, marking his most profitable investment ever. Learn the key principles behind this success and how they apply to all investors, from brand power to patience in the market.
Key Takeaways. In 2025, Berkshire added healthcare and cyclicals (including a new stake in UnitedHealth, while paring its megacap tech exposure, including Apple and a major bank. Scale matters: Berkshire invests with massive liquidity and insurance float advantages most individuals don't have.
With $900,000 saved, and factoring in an average annual rate of return between 10–12%, you'll have between $90,000 and $108,000 to live off of each year, not including your Social Security benefits.
Just before Warren Buffett surprised shareholders in early May with his plan to step down as CEO at the end of the year, Berkshire Hathaway's B shares were outperforming the benchmark S&P 500 by 22.4 percentage points in 2025.
Warren Buffett's core investing rules emphasize long-term value, understanding businesses, patience, and emotional control, summarized often as: buy businesses you understand, be fearful when others are greedy (and greedy when fearful), invest for the long haul, prioritize risk management (never lose money), and stay disciplined. While not always a fixed "five rules," these principles guide his value investing approach to wealth building, focusing on fundamentals over market noise.
And to go one step further, we recommend dividing your mutual fund investments equally between four types of funds: growth and income, growth, aggressive growth, and international.
Warren Buffett's 8+8+8 Rule — A Lesson for Every Professional This rule reminds us of the importance of balance in our daily lives: 8 hours for work, 8 hours for rest, and 8 hours for personal time. This principle highlights the value of employee well-being, productivity, and sustainable performance.
And during the 2005 Berkshire Hathaway annual shareholder meeting, Buffett made a point to sound a major warning on Social Security. "I basically believe that anything that would take Social Security payments below their present guaranteed level is a mistake," he said.