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Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Buffett give portfolio allocation guidelines Date: 3/1/2008 9:41 AM
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I doubt Buffett is giving advice to small investors other than to buy Berkshire Hathaway stock and hold it.

Re the graphs, I have no problem with not showing data for all years. I focus on the average annual returns and the number of years with losses. Note in the heavy stock allocations there's relatively little difference in the years with losses. Same with the heavy bond allocations. So can you sleep at night with 25% of the years losing money? If not, stick to a balanced of bond weighted portfolio.

My bigger concern is with those average annual returns. Note that both the highest gains and biggest losses occured in the 1930's. How much is that skewing the returns? Not believing we will repeat the Great Depression, but believing a repeat of the 1970's is possible, I'd prefer seeing results for the post WW II period only. Seems more relevant to current investing to me.
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