Warren Buffett’s 90/10 Rule: A Simple Pathway To Great Wealth
November 7, 2025
10:23 pm
Warren Buffett’s 90/10 investing formula—90% in a low-cost S&P 500 fund and 10% in short-term bonds—offers simplicity, low fees, and steady long-term growth.
Warren Buffett’s “90/10 rule” has become one of the most discussed investment formulas among everyday investors—a strategy that combines simplicity, patience, and trust in the long-term strength of the U.S. economy.
The concept, outlined by Buffett in a 2013 letter to Berkshire Hathaway shareholders, is straightforward: allocate 90% of your investment portfolio to a low-cost S&P 500 index fund and the remaining 10% to short-term U.S. government bonds. Buffett’s rationale is that most individuals lack the …
