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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: james22   😊 😞
Number: of 22352 
Subject: Re: I am noodling on a major change to my portfolio.
Date: 11/28/23 9:34 AM
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Sequence of returns not an issue "If you have enough money to fund your retirement".

Sure.

But over the long run you'll not get the average valuation.

In fact, SWR and the average return are only very slightly correlated.

earlyretirementnow.com - The ultimate guide to safe withdrawal rates part sequence of return risk

Buffett (2014): "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."

This is what I do myself, but only because I have a <3% WR.

The Cash Cushion approach is really caught between a rock and a hard place. Either the drawdown is so long that you can’t possibly have enough cash to make it through or the drawdown is short enough that the cash cushion likely wouldn’t have made a big difference.

earlyretirementnow.com - The ultimate guide to safe withdrawal rates part cash cushion

earlyretirementnow.com - Bucket strategies swr series part
earlyretirementnow.com - Discussing retirement bucket strategies with fritz gilbert swr series part
earlyretirementnow.com - The ultimate guide to safe withdrawal rates part more flexibility myths

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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
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