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: Suggested Citation
Javier Estrada (Contact Author)
IESE Business School ( email )
IESE Business School
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