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.


Read the full article here.


The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here

Related lessons

Lesson type: Think like an investor

Understand your missed opportunities

Andrew Clifford

Safe bets aren't safe when you consider what could have been. There's no point keeping your head in the sand when it comes to understanding opportunit...

View Lesson >

Lesson type:

How to find the information that matters

Andrew Clifford

We've gone from struggling to find information to being bombarded with too much information. How do you filter the flood so you only find the informat...

View Lesson >

Lesson type: Think like an investor

What can we learn from the GFC?

Alex Burke

A decade on and we're still reeling. This lesson was hard learned....

View Lesson >

Lesson type:

Here's why the ATO is looking at your share portfolio

Alex Burke

Here's what you can do to protect yourself. ...

View Lesson >

Lessons

Get the latest lessons

Enter your email address to subscribe to our Investment Series newsletter and we’ll let you know when new content goes live.

Please enter a valid email address.

Almost there!

Thank you for registering your interest in Lessons. . We’ll email you the latest content as it goes live. To complete the subscription process, click on the subscribe button below. An email will then be sent to you outlining steps to finalise your subscription.

We’re committed to helping you get the investment knowledge you want, so let us know what you’d love to see more of:

  • TV Show
  • Wealth Stories
  • Experts
  • All of the above

I have read and agree to the terms, privacy policy and financial services guide.