Tag - Warren Buffett

Advice to the Advisors

Warren Buffett Lesson on Risk and Volatility | Sheaff Brock Institutional Group

The Lesson Many of Your Clients Were Never Taught

“That lesson has not customarily been taught in business schools,” Warren Buffett observes, referring to the concept that “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.” Of course, the fact that stock prices will always be far more volatile than cash-equivalents must play a part in any advisor-client discussions of portfolio design. But, [...]

Advice to the Advisors

Our Dividend Growth Investing Methodology | Sheaff Brock Institutional Group

Dividend Growth Investing Methodology

Dividend growth investing, as seekingalpha.com explains, involves the researching and careful selection of high-quality companies that are capable of growing profits for extended periods of time and that pay shareholders sustainable dividends that are regularly increased on an annual basis. “The U.S. stock market has been one of the greatest long-term wealth generators in history, recording a compound annual growth rate around 9% since the late 1800s,” simplysafedividends.com reminds investors. “However, as with most things in life,” the authors caution, [...]