Buffett Risk

“The strategy we’ve adopted precludes our following standard diversification dogma... In stating this opinion, we define risk, using dictionary terms, as ‘the possibility of loss or injury'.‘” - Warren Buffett

The Best Risk Tolerance Process For Your Clients

Best Risk Tolerance

Assessing your clients' risk tolerance and overall risk profile (which includes risk capacity, risk needs and behavioral biases) is essential to building suitable portfolios, running an efficient practice and meeting compliance requirements. But what is the ideal way to do it? Tip: It's not just about having the best risk tolerance questionnaire. First, let's define "best". In ...

Why You Should (And Shouldn’t) Use A Risk Tolerance Questionnaire

Risk Tolerance Question Mark

All financial advisors collect Know Your Client (KYC) information about their clients. Not only is it a regulatory requirement, it's good business. It helps you build a winning investment approach by requiring you to collect your clients vitals. History Of Risk Questionnaires Unfortunately, as KYC requirements expanded in the 90's and 2000's advisors increasingly had to use ineffective, ...