Warren Buffett Berkshire Hathaway Portfolio: Rebalancing Strategy

Data Source: from April 1980 to April 2025
Consolidated Returns as of 30 April 2025

Managing the Warren Buffett Berkshire Hathaway Portfolio with a yearly rebalancing, you would have obtained a 12.80% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 12.80%.

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.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Apr 30, 2025

Implementing different rebalancing strategies, the Warren Buffett Berkshire Hathaway Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on April 1980.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
WARREN BUFFETT BERKSHIRE HATHAWAY PORTFOLIO RETURNS
Period: April 1980 - April 2025
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Apr 30, 2025
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~45Y)
No Rebalancing 33.53 (0) 23.23 (0) 14.14 (0) 12.80 (0) 19.50 (0)
Yearly Rebalancing 33.53 (1) 23.23 (5) 14.14 (10) 12.80 (30) 19.50 (45)
Half Yearly Rebalancing 33.53 (2) 23.23 (10) 14.14 (20) 12.80 (60) 19.50 (90)
Quarterly Rebalancing 33.53 (4) 23.23 (20) 14.14 (40) 12.80 (120) 19.50 (181)
5% Tolerance per asset 33.53 (0) 23.23 (0) 14.14 (0) 12.80 (0) 19.50 (0)
10% Tolerance per asset 33.53 (0) 23.23 (0) 14.14 (0) 12.80 (0) 19.50 (0)

In order to have complete information about the portfolio, please refer to the Warren Buffett Berkshire Hathaway Portfolio: ETF allocation and returns page.

Performances as of Apr 30, 2025

Historical returns and stats of Warren Buffett Berkshire Hathaway Portfolio, after implementing different rebalancing strategies.

WARREN BUFFETT BERKSHIRE HATHAWAY PORTFOLIO PERFORMANCES
Period: April 1980 - April 2025
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 19.50 (0) 21.79 0.90 -44.49 0.44
Yearly Rebalancing 19.50 (45) 21.79 0.90 -44.49 0.44
Half Yearly Rebalancing 19.50 (90) 21.79 0.90 -44.49 0.44
Quarterly Rebalancing 19.50 (181) 21.79 0.90 -44.49 0.44
5% Tolerance per asset 19.50 (0) 21.79 0.90 -44.49 0.44
10% Tolerance per asset 19.50 (0) 21.79 0.90 -44.49 0.44
(*) Since Apr 1980 (~45 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2025

Historical Drawdowns of Warren Buffett Berkshire Hathaway Portfolio, after implementing different rebalancing strategies.

WARREN BUFFETT BERKSHIRE HATHAWAY PORTFOLIO DRAWDOWNS
Period: April 1980 - April 2025
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-44.49
Jan 2008 - Jan 2013
-44.49
Jan 2008 - Jan 2013
-44.49
Jan 2008 - Jan 2013
-44.49
Jan 2008 - Jan 2013
-44.49
Jan 2008 - Jan 2013
-44.49
Jan 2008 - Jan 2013
-43.81
Jul 1998 - Nov 2003
-43.81
Jul 1998 - Nov 2003
-43.81
Jul 1998 - Nov 2003
-43.81
Jul 1998 - Nov 2003
-43.81
Jul 1998 - Nov 2003
-43.81
Jul 1998 - Nov 2003
-32.28
Jan 1990 - May 1991
-32.28
Jan 1990 - May 1991
-32.28
Jan 1990 - May 1991
-32.28
Jan 1990 - May 1991
-32.28
Jan 1990 - May 1991
-32.28
Jan 1990 - May 1991
-31.28
Oct 1987 - Jul 1988
-31.28
Oct 1987 - Jul 1988
-31.28
Oct 1987 - Jul 1988
-31.28
Oct 1987 - Jul 1988
-31.28
Oct 1987 - Jul 1988
-31.28
Oct 1987 - Jul 1988
-23.15
Apr 2022 - Jul 2023
-23.15
Apr 2022 - Jul 2023
-23.15
Apr 2022 - Jul 2023
-23.15
Apr 2022 - Jul 2023
-23.15
Apr 2022 - Jul 2023
-23.15
Apr 2022 - Jul 2023
5 Worst Drawdowns - Average
-35.00 -35.00 -35.00 -35.00 -35.00 -35.00
10 Worst Drawdowns - Average
-25.77 -25.77 -25.77 -25.77 -25.77 -25.77

For a deeper insight, please refer to the Warren Buffett Berkshire Hathaway Portfolio: ETF allocation and returns page.