TY - JOUR T1 - Buffett’s Asset Allocation Advice: <em>Take It … with a Twist</em> JF - The Journal of Wealth Management SP - 59 LP - 64 DO - 10.3905/jwm.2016.18.4.059 VL - 18 IS - 4 AU - Javier Estrada Y1 - 2016/01/31 UR - https://pm-research.com/content/18/4/59.abstract N2 - 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 ER -