Subject: Re: 90/10 or 10/90?
Fascinating story, dealraker. As I'm sure you know, Warren said that the 90/10 portfolio only contains short term treasuries so that one doesn't have to sell stocks when stocks are down. It's not because he thinks that short term treasuries are a particularly profitable investment. Long term, stocks are expected to return inflation plus 6%, with 3% inflation. T-Bills are expected to return inflation, so holding any T-Bills reduces return. It's the near term, the next 5-10 years, over which I think that T-Bills will outperform the S&P, but not outperform BRKB.