Blast from the Past - 2014

Lots of good stuff in this interview, including the Buffett 90/10 portfolio:

Buffett: “People react too much to short-term things” - full interview (cnbc.com)

BUFFETT: Well, I didn’t lay out my whole will. There’s hope for some of you who haven’t been mentioned yet.

The-- but I did explain, because I laid out what I thought the average person who is not an expert on stocks should do.

And my widow will not be an expert on stocks. And- I wanna be sure she gets a decent result. She isn’t gonna get a sensational result, you know? And since all my Berkshire shares are going-- to philanthropy-- the question becomes what does she do with the cash that’s left to her? And I’ve been-- part of it goes outright, part of it goes to a trustee. But I’ve told the trustee to put 90% of it in an S&P 500 index fund and 10% in short-term governments. And the reason for the 10% in short-term governments is that if there’s a terrible period in the market and she’s withdrawing 3% or 4% a year you take it out of that instead of selling stocks at the wrong time. She’ll do fine with that. And anybody will do fine with that. It’s low-cost, it’s in a bunch of wonderful businesses and it takes care of itself.

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