Buffet & Dalio FW

Created

11/2022

Fixed Allocation




Portfolio Overview



The Buffet & Dalio Fixed Weight (FW) Portfolio blends two legendary investment strategies—Warren Buffet’s long-term growth-focused, low-cost index investing, and Ray Dalio’s "All Weather" strategy designed to perform across various market conditions.

This portfolio emphasizes diversification across asset classes and geographies to minimize risk while aiming for steady growth. By combining equity exposure from the S&P 500 and Nasdaq 100 with bond holdings and commodities, it aims to provide a balance between risk and reward, making it suitable for investors looking for low-maintenance, long-term wealth accumulation with periodic rebalancing.

StopLoss: No StopLoss

Rebalance: Annual (within 5%, watch tutorial)




Summary of Statistics





Statistic

Portfolio

Benchmark 60SPY/40IEF

Annualized Return

10.79%

9.5%

Annualized Volatility

13.35%

9.9%

Max Drawdown (EOM)

-34.18%

-29.5%

Longest Drawdown

28 Months

40 Months

Best Month Return

16.84%

10.7%

% Profitable Months

58.8%

66.7%

Worst Month Return

-13.07%

-10.7%

Sharpe Ratio

0.75

0.5

Sortino Ratio

1.15

0.84






Growth of $10,000 (starting on Aug 2019)







Growth of $10,000 (starting on Dec 2007)







Drawdown Curve








Average Asset Allocation








Positions / Month: (9)





Monthly & Annual Returns









Benefits

  • Diversification: The portfolio is constructed with a wide range of assets, balancing equities, bonds, commodities, and gold to perform well across various market conditions.
  • Low Maintenance: Rebalancing is only required once a year if an asset class deviates by 5% or more, making it a set-and-forget type of portfolio.
  • Risk Management: By combining the recommendation of two of the top investors globally Buffet’s focus on growth through stocks and Dalio’s principles of risk parity, the portfolio aims to minimize volatility while maintaining solid returns.
  • Global Exposure: This portfolio includes international equities and commodities, reducing reliance on U.S. markets and adding a layer of geographical diversification.
  • Inflation Hedge: With exposure to both commodities and gold, the portfolio offers protection against inflationary pressures and geopolitical risks.






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