The world's simplest investment strategy – 90% S&P 500, 10% short-term bonds. Recommended by the most successful investor of all time.
📈 90% Stocks📉 10% Bonds⭐ For Beginners💰 From €25/month
🎯 Allocation Calculator
Enter your total capital – the calculator instantly shows how much goes into S&P 500 and short-term bonds.
€
€1,000€500,000
Total Capital
10,000.00 €
Split across 2 asset classes
90%
10%
Your Allocation at a Glance
⚠️ Not financial advice. This calculator is for informational purposes only. All information without guarantee. Investments carry the risk of loss. Source: Warren Buffett, Berkshire Hathaway Annual Letter 2013.
📊 Growth Calculator
Project the growth of your portfolio over any time period with an adjusted return expectation.
yrs
1 year40 years
%
1%15%
Final Capital after 20 years
59,332.00 €
At 7.0% p.a. return
Invested
10,000.00 €
Gains
49,332.00 €
Gain %
493.3%
💡 Note: This projection shows theoretical growth at a constant return rate. Real market returns vary from year to year.
📋 ETF Reference Table
Recommendation: Choose a low-cost S&P 500 ETF (TER below 0.10%) and short-term government bonds.
iShares € Govt Bond 1-3yr (IBTE), Lyxor EuroMTS 1-3Y (MT13)
Not financial advice. Before buying: check costs (TER), domicile (US ETFs are often tax-disadvantaged for EU investors), tracking error and liquidity.
💰 TER Cost Calculator
Compare the impact of different ETF expense ratios on your long-term returns.
%
0% (impossible)5%
Annual Cost
10.00 €
Cost over 20 years
-
With TER (0.1%)
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Without TER
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💡 TER Comparison: Low-cost index ETFs: 0.03–0.20% TER. Expensive actively managed funds: 1.50–2.50% TER. Over 20 years the differences can amount to thousands of euros.
🏦 Where can you implement the 90/10 portfolio?
German brokers and robo-advisors where you can buy S&P 500 and US Treasuries via savings plans.
Trade Republic
Neobroker · from €1
Savings plans on all ETFs possible
€0 order fees
3.5% p.a. on cash balances
BaFin regulated
Suitability
⭐⭐⭐
Scalable Capital
Broker + Robo · from €1
PRIME ETF: savings plans without surcharge
Largest ETF universe in Germany
Managed portfolios also available
BaFin regulated
Suitability
⭐⭐⭐
ING DiBa
Direct Bank · from €1
Free ETF savings plans
User-friendly platform
Large ETF selection
BaFin regulated
Suitability
⭐⭐⭐
Comdirect
Direct Bank · from €25
Largest ETF selection in Germany
DKB partnership (interest credits)
Bonuses for new customers
BaFin regulated
Suitability
⭐⭐⭐
💡 Buffett tip: He explicitly recommends Vanguard for their lowest costs. In Germany, Vanguard is available as a UCITS ETF through many of the platforms listed above.
💰
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The 90/10 strategy was recommended by Warren Buffett in his 2013 letter to Berkshire Hathaway shareholders. It consists of 90% S&P 500 index funds and 10% short-term US Treasuries. It is the simplest and most efficient investment strategy for beginners and long-term investors, which Buffett himself recommended for his family.
Buffett explicitly recommends low-cost Vanguard funds. For the S&P 500, ETFs like VOO, IVV or SPY (US) or CSPX or XDPG (UCITS-Europe) are suitable. For short-term US Treasuries: SHY (US) or IBTE (UCITS). The core principle: choose ETFs with the lowest expense ratio (TER below 0.10%).
Long-term, no. The S&P 500 has historically always recovered, even after severe market crashes (2000, 2008, 2020). The maximum drawdown was around 55%, but over longer periods (10+ years) the strategy has always been profitable. Buffett himself says: "The best time to invest is when there is the most fear."
Once a year is optimal. The pragmatic rule: rebalance when the equity allocation deviates by more than 5–10 percentage points from 90%. If the portfolio has moved to 85% or 95% through market movements, buy bonds or sell equities to return to 90/10.
No minimum capital needed! With modern neobrokers (Trade Republic, ING DiBa), free savings plans are possible from just €1. This is perfect for beginners and savers with a small budget. Instead of €10,000 at once, you can start monthly from €25–50.
S&P 500 = US only (~500 large companies). World ETF = globally diversified (North America, Europe, Asia, emerging markets). Buffett favors the US for its innovation strength, stable legal system and market liquidity. The US is also home to the world's most valuable tech and industrial companies.
Yes, ideal for beginners and small savings. The 90/10 strategy is one of the simplest strategies of all – you only need two ETFs. With modern neobrokers and €0 fees, this is the most accessible method to systematically build wealth.
Buffett 90/10 has higher expected returns (~8–10% historically), but also higher volatility. All-Weather (30/40/7.5/7.5) is more stable in crises due to broad diversification. Buffett 90/10 is aimed at long-term investors with 10+ year horizons and high risk tolerance. All-Weather is suitable for more conservative investors.
Historical Backtest: How would your money have grown?
Simulate the real performance of this portfolio from 2000 to 2024 — including the Dotcom crash,
financial crisis 2008, COVID crash and the rate turnaround 2022. Compare with S&P 500, overnight savings and other strategies.
* Historical returns are no guarantee of future results. Data approximated based on
S&P 500 Total Return, LBMA Gold, US Treasuries (Bloomberg), ECB money market rates.
No consideration of taxes, transaction costs or currency hedging.
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