Consolidated Returns as of 31 October 2024
Managing the Warren Buffett Portfolio with a yearly rebalancing, you would have obtained a 10.76% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 10.11%.
How do returns and drawdowns change, implementing different rebalancing strategies?
Rebalancing Strategies
In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Oct 31, 2024
Implementing different rebalancing strategies, the Warren Buffett Portfolio guaranteed the following returns.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Oct 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~154Y) |
|||||
| No Rebalancing | 38.29 | (0) | 15.15 | (0) | 12.88 | (0) | 10.76 | (0) | 9.00 | (0) |
| Yearly Rebalancing | 34.94 | (1) | 13.88 | (5) | 11.80 | (10) | 10.17 | (30) | 8.78 | (154) |
| Half Yearly Rebalancing | 34.71 | (2) | 13.85 | (10) | 11.77 | (20) | 10.11 | (60) | 8.77 | (308) |
| Quarterly Rebalancing | 34.72 | (4) | 13.89 | (20) | 11.80 | (40) | 10.13 | (120) | 8.77 | (616) |
| 5% Tolerance per asset | 36.02 | (0) | 14.05 | (0) | 12.03 | (1) | 10.31 | (4) | 8.86 | (18) |
| 10% Tolerance per asset | 38.29 | (0) | 15.15 | (0) | 12.88 | (0) | 10.76 | (0) | 9.00 | (0) |
In order to have complete information about the portfolio, please refer to the Warren Buffett Portfolio: ETF allocation and returns page.
Performances as of Oct 31, 2024
Historical returns and stats of Warren Buffett Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 9.00 | (0) | 16.02 | 0.56 | -82.40 | 0.11 |
| Yearly Rebalancing | 8.78 | (154) | 14.83 | 0.59 | -79.29 | 0.11 |
| Half Yearly Rebalancing | 8.77 | (308) | 14.89 | 0.59 | -79.28 | 0.11 |
| Quarterly Rebalancing | 8.77 | (616) | 14.92 | 0.59 | -79.40 | 0.11 |
| 5% Tolerance per asset | 8.86 | (18) | 15.14 | 0.59 | -79.41 | 0.11 |
| 10% Tolerance per asset | 9.00 | (0) | 16.02 | 0.56 | -82.40 | 0.11 |
Drawdowns as of Oct 31, 2024
Historical Drawdowns of Warren Buffett Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-82.40
Sep 1929 - Feb 1945
|
-79.29
Sep 1929 - Jun 1944
|
-79.28
Sep 1929 - Jun 1944
|
-79.40
Sep 1929 - Jun 1944
|
-79.41
Sep 1929 - Jun 1944
|
-82.40
Sep 1929 - Feb 1945
|
|
-50.35
Nov 2007 - Mar 2012
|
-45.52
Nov 2007 - Apr 2011
|
-45.82
Nov 2007 - Feb 2012
|
-45.99
Nov 2007 - Feb 2012
|
-45.67
Nov 2007 - Apr 2011
|
-50.35
Nov 2007 - Mar 2012
|
|
-44.79
Sep 2000 - Oct 2006
|
-40.52
Jan 1973 - Jun 1976
|
-40.82
Jan 1973 - Jun 1976
|
-40.84
Jan 1973 - Jun 1976
|
-40.42
Jan 1973 - Mar 1976
|
-44.79
Sep 2000 - Oct 2006
|
|
-44.79
Jan 1973 - Sep 1976
|
-39.67
Sep 2000 - Sep 2006
|
-40.01
Sep 2000 - Sep 2006
|
-39.88
Sep 2000 - Sep 2006
|
-40.37
Sep 2000 - Oct 2006
|
-44.79
Jan 1973 - Sep 1976
|
|
-32.15
Oct 1906 - Dec 1908
|
-30.50
Apr 1876 - Apr 1879
|
-30.56
Apr 1876 - Apr 1879
|
-30.67
Apr 1876 - Apr 1879
|
-31.66
Oct 1906 - Dec 1908
|
-32.15
Oct 1906 - Dec 1908
|
| 5 Worst Drawdowns - Average | |||||
| -50.90 | -47.10 | -47.30 | -47.36 | -47.51 | -50.90 |
| 10 Worst Drawdowns - Average | |||||
| -39.49 | -36.77 | -36.87 | -36.92 | -37.16 | -39.49 |
For a deeper insight, please refer to the Warren Buffett Portfolio: ETF allocation and returns page.
