Lesson type: Think like an investor
How to master Mr. Market
Say you own a small stake in a company. Every day, one of your partners tells you what he thinks the business is worth, and he offers to buy your stake or sell you another on that basis. Sometimes his idea of value seems justified by the company’s prospects. But other times, his excitement or fears run away with him, and the value he suggests seems little short of silly. This partner’s name is Mr Market, and this paraphrased parable is from Benjamin Graham, the father of fundamental investing.
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