MarketPR
Warren Buffett directed the trustee of his wife's estate to allocate 90% of the portfolio into a low-cost S&P 500 index fund, specifically suggesting Vanguard, while placing the remaining 10% in short-term government bonds.
This instruction, detailed in Berkshire Hathaway's 2013 shareholder letter, outlines a strategy for managing a large inheritance where the bond reserve serves as a liquidity buffer to cover annual spending without forcing stock sales during market downturns.
The investment vehicle named is a Vanguard S&P 500 index fund that tracks the roughly 500 large U.S. companies in the index by market value.
Because the fund does not employ analysts to pick individual stocks, it maintains an expense ratio of 0.03%. Over the past decade, the share price of this fund increased by approximately 324%.
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