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Yeah, tough for most investors to sit through 50-60-70% drawdowns, even if they believe they possess a high risk tolerance and have a long time horizon.
FWIW, my take on Buffett's 90% equity/10% short term bond is that this was a retirement portfolio recommendation, and assuming 4% withdrawal rate, that is enough "cash" to wait out a 2-3 year market drop. Even if the market doesn't fully recover in 3 years, it should have recovered significantly.
The bond allocation wasn't an attempt to predict interest rates, but to provide a near cash allocation, ISTM.
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The bond allocation wasn't an attempt to predict interest rates, but to provide a near cash allocation, ISTM.