90/10 is an investment strategy proposed by Warren Buffett that deploys 90% of investment capital to S&P index funds and 10% to lower-risk investments.

Legendary investor Warren Buffett invented the “90/10" investing strategy for the investment of retirement savings. The 90/10 investing strategy for retirement savings involves allocating 90% of one's investment capital in low-cost S&P 500 index funds and the remaining 10% in short-term government bonds. One approach has the investor switching the allocations so that 90% of funds are put in low-risk government bonds and 10% are invested in index funds. However, if the S&P 500 declines by 10%, the overall return on the portfolio after one year would be -8.6% using the calculation (0.90 x -10% + 0.10 x 4%).
A benefit of index funds is that they have lower management fees than other funds because they are passively managed. The method involves deploying 90% of one's investment capital into stock-based index funds while allocating the remaining 10% of money toward lower-risk investments.

90/10 Strategy

The Buffett Rule is part of a tax plan proposed in 2011 that would have enacted a 30% effective federal tax rate on the income of millionaires.

The Buffett Rule: A Basic Principle of Tax Fairness

The “Buffett Rule” was part of the tax plan proposed by President Barack Obama in 2011. They believe the Buffett Rule can usher in middle-class tax relief by making sure that the wealthy pay as large a share of their income in taxes as the middle class does. It blames tax code bias for an unfair tax system that forces many middle-class workers to pay a larger proportion of their income in taxes than the wealthy do. The Buffett Rule contends that the tax system is not fair because it puts a greater proportional tax burden on wages than it does on investment income. The middle-class shoulder this burden because their income primarily consists of wages subjected to income, payroll, and other federal taxes whereas upper-class income consists primarily of investment income taxed at preferential capital gains rates.

Buffett Rule

"Derivatives time bomb" is a descriptive term for possible market mayhem if there is a sudden unwinding of massive derivatives positions.

BUFFETT: This is the 'time bomb' in the markets

"Derivatives time bomb" is a descriptive term for possible market mayhem if there is a sudden, as opposed to orderly, unwinding of massive derivatives positions. Financial regulations implemented since the financial crisis are designed to tamp down on the risk of derivatives in the financial system; however, derivatives are still widely used today and are one of the most common securities traded in the financial marketplace. A number of well-known hedge funds have imploded as their derivatives positions declined dramatically in value, forcing them to sell their securities at markedly lower prices to meet margin calls and customer redemptions. Though he believes in the danger of derivatives, he still utilizes them when he sees an opportunity, in a manner that he believes is prudent and that won't result in a large financial loss. Institutional investors use derivatives to either hedge their existing positions or to speculate on various markets, whether equities, credit, interest rates, or commodities.

Derivatives Time Bomb

Look-through earnings is based on the concept that a firm's value is ultimately determined by how retained earnings are invested in future years by the firm to produce more earnings.

The look-through numbers include Berkshire's own reported operating earnings ... plus Berkshire's share of undistributed earnings of our major investees—amounts that are not included in Berkshire's figures under conventional accounting ..._
_We have found over time that undistributed earnings of our investees, in aggregate, have been fully as beneficial to Berkshire as if they had been distributed to us (and therefore had been included in the earnings we officially report). Look-through earnings are not necessarily a quantity; instead, look-through earnings is based on the concept that a firm's value is ultimately determined by how retained earnings are invested in future years by the firm to produce more earnings. Look-through earnings take the current period earnings of a company (as reported in a quarterly or annual report) and add to that figure all sources of earnings expected in the long-run. Buffett believes that the intrinsic value of Berkshire Hathaway Inc. has grown at approximately the same rate as its look-through earnings in the past and will continue to do so in the future.

Warren Buffett

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90/10 Strategy

Buffett Rule

Derivatives Time Bomb

Look-Through Earnings