To use Ben Graham’s metaphor, if you own stocks of a company, Mr. Market will quote you a price every now and then, to either buy your interests or sell you more. The prices Mr. Market quotes can fluctuate wildly, even when there is no change in the company’s business. Mr. Market’s wild mood swing is nothing new to true investors, as they know Mr. Market has a bipolar personality and always acts faster than he thinks.
On the other hand, there is never an agreement on what price investors should take advantage of Mr. Market at, because there is no universal value stick one can apply to a business. Depending on their objectives, risk tolerance, and expertise, the same company can present drastically different value propositions to different investors. Value, like beauty, is in the eyes of beholders.
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On the other hand, there is never an agreement on what price investors should take advantage of Mr. Market at, because there is no universal value stick one can apply to a business. Depending on their objectives, risk tolerance, and expertise, the same company can present drastically different value propositions to different investors. Value, like beauty, is in the eyes of beholders.
read the complete article
