Global Asset Allocation in Retirement: Buffett's Advice and a Simple Twist

Posted: 21 May 2019

Date Written: July 24, 2016

Abstract

Warren Buffett has consistently advised investors to follow a simple approach, diversifying broadly and minimizing costs. In fact, he recommended the trustee that will manage his wife’s bequest to stick to a simple 90-10 stock-bond portfolio. Is this a sensible strategy for retirees in general? Can it be tweaked slightly to yield better results? The overall evidence from 21 countries over a 115-year period suggests a ‘yes’ answer to both questions.

Keywords: Warren Buffett; Asset Allocation; Glidepath; Retirement

JEL Classification: G11

Suggested Citation

Estrada, Javier, Global Asset Allocation in Retirement: Buffett's Advice and a Simple Twist (July 24, 2016). https://doi.org/10.3905/jor.2016.4.2.054. Available at SSRN: https://ssrn.com/abstract=2813826 or http://dx.doi.org/10.2139/ssrn.2813826

Javier Estrada (Contact Author)

IESE Business School ( email )

IESE Business School
Av. Pearson 21
Barcelona, 08034
Spain
+34 93 253 4200 (Phone)
+34 93 253 4343 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
1,599
PlumX Metrics