Warren Buffett’s 90/10 investing rule explained: Warren Buffett swears by this 90/10 investing rule — why the Oracle of Omaha backs this simple strategy
Warren Buffett’s 90/10 strategy is one of the simplest and most effective investment approaches for individual investors. Buffett introduced this rule to help average investors benefit from the long-term growth of the American economy while avoiding high fees and unnecessary complexity.
Buffett has long criticized the performance of most fund managers, noting that the majority fail to consistently beat the S&P 500. His advice is rooted in historical market data and the principle of patience. The 90/10 strategy allows investors to maximize growth while maintaining a small safety net. It is designed to be simple, low-maintenance, and resilient over time.
The rule calls for 90% of investments in a low-cost S&P 500 index fund and 10% in…
