Everything Not Zen: Finding Return Opportunities Amidst Renewed Market Volatility – Part I
Let me tell you the story of Mr. Market.
It is one all value investors know well, but for those of you who are unfamiliar, now is a great time to tell you about this fascinating man.
Mr. Market is the mercurial character first introduced to us by the father of value investing, Benjamin Graham, in his classic book, “The Intelligent Investor.”
As Graham describes him, Mr. Market is a highly volatile individual whose beliefs are easily moved by the prevailing winds. His mood can rapidly shift from extreme optimism to extreme pessimism.
Rollercoaster REV STAN
These mood swings, Graham continues, affect Mr. Market’s outlook for the businesses he owns. Some days he is willing to buy shares at sky-high valuations; other days he is willing to sell them for any price he can get. Not exactly a “buy low, sell high” kind of guy.