Archive for May 16th, 2008
Volatility: a drag on return
Posted by: Michael Zhuang on: May 16, 2008
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. Let’s say you invest [...]
Author
+Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC. He is also a regular contributor to Morningstar Advisor and Physicians Practice. To explore a long-term wealth advisory relationship, schedule a discovery meeting (phone call) with him.
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