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  • We regard using [a stock's] volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return. Some great businesses have very volatile returns - for example, See's [a candy company owned by Berkshire] usually loses money in two quarters of each year - and some terrible businesses can have steady results.

    Charlie Munger's comments on risk at the 2001 Berkshire Hathaway Annual Meeting, www.tilsonfunds.com. April 28, 2001.