Diagnosing Mr. Market

At a glance The market’s movements often belie rational value parameters. These idiosyncrasies were famously captured as Mr. Market by Ben Graham in his seminal book ‘The Intelligent Investor’ Mr. Market is manic-depressive, offering unreasonably high and low prices during times of optimism and pessimism respectively These extremes are explained by behavioral biases inherent in investor behaviour, ranging from overconfidence to trend-chasing We’re all susceptible to these biases but being aware of them helps reduce their impact on our wealth-building goals In the post on why stock prices move in the long-term, I mentioned how the opportunities for the calm

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