New Delhi, Aug. 25 -- Known as the Oracle of Omaha and for his spectacular run at the helm of Berkshire Hathaway, many investors big and small, look to billionaire Warren Buffett for his advice on the best course of action in the markets.

Among his favoured investment advice for average investors is the 90/10 rule. What is this rule? According to Warren Buffett, you should divide your investment as follows: Put 90 per cent into low-cost S&P 500 index fund, and the remaining 10 per cent in short-term government bonds.

A straightforward bet, the billionaire investor's 90/10 portfolio plan suggests that most investors benefit from broader market exposure, as opposed to trying to predict the markets or concentrating all their eggs in a few ...