{"id":16140,"date":"2018-03-05T07:29:24","date_gmt":"2018-03-05T07:29:24","guid":{"rendered":"http:\/\/thepatientinvestor.com\/?p=16140"},"modified":"2018-03-05T07:37:06","modified_gmt":"2018-03-05T07:37:06","slug":"warren-buffett-bonds-and-portfolio-risk","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2018\/03\/05\/warren-buffett-bonds-and-portfolio-risk\/","title":{"rendered":"Warren Buffett: Bonds and portfolio risk"},"content":{"rendered":"<blockquote><p>It is a terrible mistake for investors with long-term horizons \u2013 among them, pension funds, college endowments and savings-minded individuals \u2013 to measure their investment \u2018risk\u2019 by their portfolio\u2019s ratio of bonds to stocks. Often, high-grade bonds in an investment portfolio increase its risk.<\/p><\/blockquote>\n<p>~ Warren Buffett, letter to the shareholders of Berkshire Hathaway &#8211; February 24, 2018 <\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is a terrible mistake for investors with long-term horizons \u2013 among them, pension funds, college endowments and savings-minded individuals \u2013 to measure their investment \u2018risk\u2019 by their portfolio\u2019s ratio of bonds to stocks. Often, high-grade bonds in an investment portfolio increase its risk. ~ Warren Buffett, letter to the shareholders of Berkshire Hathaway &#8211; &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2018\/03\/05\/warren-buffett-bonds-and-portfolio-risk\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Warren Buffett: Bonds and portfolio risk&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"quote","meta":{"_mo_disable_npp":"","_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,16,22,24],"tags":[476,2719,3262,3642],"class_list":["post-16140","post","type-post","status-publish","format-quote","hentry","category-fixed-income","category-investment-strategy-2","category-other","category-quotes","tag-bonds-2","tag-portfolio-risk","tag-stocks","tag-warren-buffett","post_format-post-format-quote"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Warren Buffett: Bonds and portfolio risk - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Warren Buffett: Bonds and portfolio risk - the patient investor\" \/>\n<meta property=\"og:description\" content=\"It is a terrible mistake for investors with long-term horizons \u2013 among them, pension funds, college endowments and savings-minded individuals \u2013 to measure their investment \u2018risk\u2019 by their portfolio\u2019s ratio of bonds to stocks. Often, high-grade bonds in an investment portfolio increase its risk. ~ Warren Buffett, letter to the shareholders of Berkshire Hathaway &#8211; &hellip; Continue reading &quot;Warren Buffett: Bonds and portfolio risk&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2018\/03\/05\/warren-buffett-bonds-and-portfolio-risk\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-05T07:29:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-03-05T07:37:06+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Warren Buffett: Bonds and portfolio risk\",\"datePublished\":\"2018-03-05T07:29:24+00:00\",\"dateModified\":\"2018-03-05T07:37:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/\"},\"wordCount\":60,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"bonds\",\"portfolio risk\",\"stocks\",\"Warren Buffett\"],\"articleSection\":[\"Bonds\",\"Investment Strategy\",\"Other\",\"Quotes\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/\",\"name\":\"Warren Buffett: Bonds and portfolio risk - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2018-03-05T07:29:24+00:00\",\"dateModified\":\"2018-03-05T07:37:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2018\\\/03\\\/05\\\/warren-buffett-bonds-and-portfolio-risk\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Warren Buffett: Bonds and portfolio risk\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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For a refresher on the indicators in our risk framework, see Managing Risk. Risk Ratio The model combines our nine risk indicators into a single Risk Ratio. The Risk Ratio is\u2026","rel":"","context":"In &quot;Active Investing&quot;","block_context":{"text":"Active Investing","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/active-investing\/"},"img":{"alt_text":"S&P 500 and Risk Ratio","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-06-28-risk-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-06-28-risk-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-06-28-risk-spx.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-06-28-risk-spx.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":23018,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/12\/02\/warren-buffett-speculation-v-investment\/","url_meta":{"origin":16140,"position":1},"title":"Warren Buffett: Speculation v. 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Unless war breaks out in the Middle East or core PCE inflation gives a nasty surprise on Thursday. We have been using the time to review our risk management model and assess the effect of various combinations of indicators on portfolio performance. 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Most investments involve a trade-off between risk and return, with higher returns requiring investors to expose themselves to greater risk. But effective diversification allows investors\u2026","rel":"","context":"In &quot;Investment Strategy&quot;","block_context":{"text":"Investment Strategy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/investment-strategy-2\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14843,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/02\/18\/bond-spreads-bullish-for-us-less-so-australia\/","url_meta":{"origin":16140,"position":5},"title":"Bond spreads bullish for US, less so Australia","author":"ColinTwiggs","date":"February 18, 2017","format":false,"excerpt":"Yield Curve The yield curve is one of the best predictors of US economic recessions. Every time the yield curve has turned negative in the last fifty years, a recession has followed. First of all, what is a yield curve? 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