Post #4783 by AdrianC on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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This is what I do myself, but only because I have a <3% WR.

The Cash Cushion approach is really caught between a rock and a hard place. Either the drawdown is so long that you can’t possibly have enough cash to make it through or the drawdown is short enough that the cash cushion likely wouldn’t have made a big difference.

Yes, agreed, but the optimum portfolio is no good if we can't stick with it.
I like having cash available. I pretty much do 90/10.

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Buffett's 90% SPY 10% cash advice wouldn't have worked great for the year 2000 retiree:
https://www.portfoliovisualizer.com/backtest-portf...

Starting Jan 2000 with $1M:
SPY/Cash withdrawing 4% currently has $419k, enough for about 6 more years. Might just squeeze out 30 years.
BRK/Cash withdrawing 4% currently has $4 million.

That's rebalancing each year. Buffett might say the 10% cash could have been used more intelligently. Maybe so.

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