Warren Buffett's Will: The 90/10 Two-Fund Portfolio Strategy

💰 Investment Advice a $150 Billion Investor Left for His Wife

Warren Buffett is the world's greatest investor with over $150 billion in assets. He built this wealth through stock picking. Yet surprisingly, his will advises his wife and heirs to skip stock picking entirely.

Instead, he recommends investing in just 2 funds.

📜 2013 Berkshire Hathaway Shareholder Letter

Buffett revealed his post-death investment plan in his 2013 shareholder letter:

"My advice to the trustee could not be more simple: Put 90% of the cash in a very low-cost S&P 500 index fund and 10% in short-term government bonds."

🎯 What Are the 2 Funds?

1️⃣ S&P 500 Index Fund (90%)

The S&P 500 is like owning America's 500 largest and most profitable companies.

• Information Technology: 30%+ (Nvidia, Apple, Microsoft)
• Financials: ~13%
• Healthcare: ~12%
• Consumer Discretionary: ~10%

With this single fund, you effectively invest in the entire US economy.

2️⃣ Short-Term Government Bond Fund (10%)

Short-term government bonds serve as the portfolio's safe haven.

• Very low risk
• Stable interest income
• Buffer against market volatility
• Capital preservation function

📊 Historical Returns

According to Jeremy Siegel's classic "Stocks for the Long Run":

Asset	200-Year Real Return (Annual)
Stocks	~6.9%
Bonds	~3.6%

90/10 Portfolio Expected Return: ~6.6% (inflation-adjusted)

This is enough to build significant wealth through compounding over the long term.

💡 Why Does Buffett Say Not to Pick Stocks?

Buffett himself is a master stock picker. But he knows:

1. Most people lack the time and expertise
2. Emotional decisions erode returns
3. Fees significantly reduce long-term gains
4. Simplicity breeds consistency, and consistency builds wealth

"The enemy of the good is the perfect. Consistently executing a simple strategy beats intermittently executing a complex one."

🏆 Key Message

The world's greatest stock investor recommends index investing instead of stock picking for those he loves most. The message to us is clear.

In the next article, we'll examine the hidden advantages of this 2-Fund strategy!