Benjamin Graham and Warren Buffet taught us the secret of making money is to be out of step with Mr. Market. In retrospect it is so obvious it is plain truth. One way you can be out of step with Mr. Market is to shift your time horizon.
Mr. Market, a.k.a. the Wall Street, looks to the future. The conventional wisdom is that the current price of a security already factors in its outlook. It may be true. But how far does Mr. Market look out to? A quarter? Two quarters? A year? A decade? Unfortunately, the answer to this question depends on the mood of Mr. Market, who is not the most mentally stable person on this planet.
Mr. Market, a.k.a. the Wall Street, looks to the future. The conventional wisdom is that the current price of a security already factors in its outlook. It may be true. But how far does Mr. Market look out to? A quarter? Two quarters? A year? A decade? Unfortunately, the answer to this question depends on the mood of Mr. Market, who is not the most mentally stable person on this planet.
