Tag - Warren Buffett

sheaff brock, goldfish swimming, stay positive in down market

Amidst Waves of Smart-Sounding Terminology, Keep Swimming

"When financial talking heads spew out a word salad of unusual terms, it makes them sound almost undoubtable," admits Sheaff Brock Managing Director Dave Gilreath. Next to market mavens using terms such as “quantitative tightening,” “yield-curve inversion,” “reversion-to-the-mean,” “earnings drought,” and “Fibonacci lines,” with the negativity backed up with oceans of data, it can be hard to keep the faith. But faith, Gilreath explains, is precisely what bullish investment folks rely on—faith in corporate resilience, human ingenuity, and the [...]

Risk and Volatility | Lesson from Warren Buffett | Sheaff Brock

The Lesson Warren Buffett Says Hasn’t Been Taught in Business School

“Risk is not the same as volatility, but that lesson has not customarily been taught in business schools,” Warren Buffett observes. “Volatility is far from synonymous with risk.” In a 2015 letter to shareholders, the Berkshire Hathaway CEO wrote about the difference between risk and volatility. Many investors, he observes, “conflate these concepts, costing themselves money.” Yes, stock prices will always be far more volatile than cash-equivalents, Buffett concedes, but over the long term, currency-denominated instruments are far riskier than [...]