Interesting Quote on Investment…

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Imagine you had a partner in a private business names Mr. Market. Mr. Markey, the obliging fellow that he is, shows up daily to tell you what he thinks your interest in the business is worth. On most days, the price he quotes is reasonable and justified by the business prospects. However, Mr. Market suffers from some rather incurable emotional problems; you see, he is very temperamental. When Mr. Market is overcome by boundless optimism or bottomless pessimism, he will quote you a price that seems to you a little short of silly. As an intelligent investor, you should not fall under the Mr. Market’s influence, but rather you should learn to take advantage of him. The value of your interest should be determined by rationally appraising the business’s prospects, and you can happily sell when Mr. Market quotes you a ridiculously high price and buy when he quotes you an absurdly low price. The best part of your association with Mr. Market is that he does not care how many times you take advantage of him. No matter how many times you saddle him with losses or rob him of gains, he will arrive the next day to do business with you again. – Benjamin Graham

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