Mar 03, 2025
Warren Buffet’s 90/10 strategy is a simple investment approach in which 90% of funds are put into in a low-cost S&P 500 index fund and 10% in short-term government bonds. It is designed for them who want to attain strong returns by putting minimum of effort and less amount of risk over time.
Source: freepik
Instead of picking up individual stocks, buffet recommends using diversified, low-cost S&P 500 index fund, according to a report by Investopedia.
Source: freepik
Trust in market growth, as S&P 500 has a record of delivering strong long-term returns.
Source: freepik
Low fees, high returns-Index funds have nominal management fees and allow investors to have more gains.
Source: freepik
Less of effort and minimal time-This approach will need less time and more of patience.
Source: freepik
Stay away from emotional investing-A wide range of portfolio helps in reducing stress.
Source: freepik
Built in risk management: The 10% bond allocation gives liquidity and safeguard from market fluctuations.
Source: freepik
Time tested approach: Records suggest Buffet’s 90/10 split outshines traditional allocation models.
Source: freepik
Not work for all-This strategy may not suit someone who prefers to preserve their capital or for retirees.
Source: freepik
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