@article {Estrada59, author = {Javier Estrada}, title = {Buffett{\textquoteright}s Asset Allocation Advice: Take It {\textellipsis} with a Twist }, volume = {18}, number = {4}, pages = {59--64}, year = {2016}, doi = {10.3905/jwm.2016.18.4.059}, publisher = {Institutional Investor Journals Umbrella}, abstract = {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}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/18/4/59}, eprint = {https://jwm.pm-research.com/content/18/4/59.full.pdf}, journal = {The Journal of Wealth Management} }