Archive for May 16th, 2008
Volatility: a drag on return
Posted by: investment-fiduciary on: May 16, 2008
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In my last article, I explained why volatility does not measure risk. It’s an assertion by none other than Warren Buffet himself. I hope the historical data I used convincingly illustrated the point.
If volatility doesn’t measure risk, then what can we learn from it?
Let’s look at this simple example. [...]
Author
Michael Zhuang is principal of MZ Capital, a fee-only RIA and DFA-approved advisor based in Washington, DC. He is also a regular contributor to Morningstar Advisor. Michael can be reached at info1@mzcap.com.
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