Majority of Warren's advice makes a lot of sense to me, however in this case a 4%-5% return might not be good enough to support someone who does not have a lot to invest in the first place. The 90-10 rule can only be applicable when the principal to be invested is enormous. As the principal decreases the amount of risk should increase to achieve better results. I would still say that any blue chip stocks would always out perform govt short term bonds on a year to year basis. Hence, although Buffet's advice might hold true for the big guns, for us small time investors blue chips are our investment to rely on.