Redefining risk-free: “risk-free” long-term bonds in 2012 were a far riskier investment than a long-term investment in common stocks, as
investing is an activity in which consumption today is foregone in an attempt to allow greater consumption at a later date. “Risk” is the possibility that this objective won’t be attained.
Another lesson from Buffett – stick with big, “easy” decisions and eschew activity.