%0 Journal Article %A Javier Estrada %T Buffett’s Asset Allocation Advice: Take It … with a Twist %D 2016 %R 10.3905/jwm.2016.18.4.059 %J The Journal of Wealth Management %P 59-64 %V 18 %N 4 %X 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 and provides investors with good upside potential and downside protection. The evidence also shows that two minor twists to the 90/10 split result intwo very simple dynamic strategies with even better upside potential and downside protection.TOPICS: Wealth management, portfolio construction, risk management, performance measurement %U https://jwm.pm-research.com/content/iijwealthmgmt/18/4/59.full.pdf