It seems to me that the Buffett Port only makes sense if you can avoid selling stock in down markets (which is how he presents the idea). Gradually selling off the equity portion in years both lean and fat defeats the reason to hold bonds at all.

Assuming a 4% SWR, a 10% bond allocation would represent about two and half years of living expenses, assuming no other income. If that doesn't feel like enough -- as I can easily imagine after the tech crash -- make it bigger. I think living with the Buffett Port does require a realistic understanding of what bear markets are like.

I have always understood Buffett's point to be that a well designed LTBH portfolio need not be diversified beyond a quasi-cash pool sufficient to cover living expenses for whatever period of time feels right. I don't know if this would work for everyone. But I bet it would work for a lot of people who maintain 60/40 ports in the hope that the bond portion will contribute an "equity-like" return.

Baltassar

Berkshire Hathaway FAQ

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