Warren Buffett's 70/30 Investing Rule Explained

Warren Buffett's 70/30 investing rule generally means putting 70% of your money in stocks and 30% in bonds or cash equivalents. The stock portion provides long-term growth, while bonds and cash help reduce volatility and provide stability. For example, a $100,000 portfolio would hold $70,000 in a diversified stock index fund and $30,000 in high-quality bonds or Treasury securities. Investors can periodically rebalance the portfolio when market movements cause the allocation to drift. Buffett's more famous recommendation is actually closer to 90% in a low-cost S&P 500 index fund and 10% in short-term Treasury bills. The main lesson is to keep costs low, diversify broadly, invest patiently, and choose an allocation that matches your risk tolerance.

Corgage helps you turn your raw data files into clear, plain-English analysis in minutes, so you can see exactly where your money stands before you set an allocation. It helps you track balances, spot trends, and model what-if scenarios across your investments without needing to learn spreadsheet formulas or hire an analyst.