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Of course, not everyone would agree with Mr Buffet. Mrs Smith, who depends on returns for her monthly income, would prefer a smooth 12 per cent. Working out whether a client is a Mr Buffet or a Mrs Smith – so-called risk profiling - is, needless the say, the core of the IFA profession.

So far, so logical, and everyone is happy. The problems start when returns no longer match the risk profile – when the 12 per cent develops lumps on the one hand, or the 15 per cent flows in with suspicious regularity on the other.

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