I think the following code clears the difference:
String A = new String("Venugopal");
String B = A;
A = A +"mitul";
System.out.println("A is " + A);
System.out.println("B is " + B);
StringBuffer SA = new StringBuffer("Venugopal");
StringBuffer SB = SA;
SA = SA.append("mitul");
System.out.println("SA is " + SA);
System.out.println("SB is " + SB);