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Author: TMFCogitarius Big gold star, 5000 posts Old School Fool Home Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 46847  
Subject: Buffett: The real risk in investing Date: 2/27/2012 11:12 AM
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In his latest shareholder letter, Buffett again has some valuable thoughts to offer on investing in general.

Here's one I strongly believe in, and hope to be able to apply every time I look at my investments:
'The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability – the reasoned probability – of that investment causing its owner a loss of purchasing-power over his
contemplated holding period. Assets can fluctuate greatly in price and not be risky as long as they are reasonably certain to deliver increased purchasing power over their holding period. And as we will see, a non-fluctuating asset can be laden with risk.'
http://www.berkshirehathaway.com/letters/2011ltr.pdf

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