Mr. Market : 市场如天空,变幻无穷。。。。莫测
I really enjoy the beauty of the sky every morning or evening whenever I look up the sky from my living room…..
these photos were taken from my house in the morning or evening.
Like skies, Mr Market’s mood swings days and nights or minutes by minutes ….
Below quoted
from Warren Buffett’s Letter to Berkshire Hathaway Shareholders in 1987.
“Ben Graham,
my friend and teacher long ago described the mental attitude toward
market fluctuations that I believe to be most conducive to investment success.
He said that you should imagine market quotations as coming from a remarkably
accommodating fellow named Mr Market who is your partner in a private
business. Without fail, Mr Market appears daily and names a price at
which he will either buy your interest or sell you his.
Even though the business
that the two of you own may have economic characteristics that are stable, Mr.
Market’s quotations will be anything but. For, sad to say, the poor fellow has
incurable emotional problems. At times he feels euphoric and can see only the
favourable factors affecting the business. When in that mood, he names a very
high buy-sell price because he fears that you will snap up his interest and rob
him of imminent gains. At other times he is depressed and can see nothing but
trouble ahead for both the business and the world. On these occasions, he will
name a very low price, since he is terrified that you will unload your interest
on him.
Mr. Market has another endearing
characteristic: He doesn’t mind being ignored. If his quotation is uninteresting
to you today, he will be back with a new one tomorrow. Transactions are
strictly at your option. Under these conditions, the more manic-depressive his
behaviour, the better for you.
But, like Cinderella at
the ball, you must heed one warning or everything will turn into pumpkins and
mice:
Mr. Market is there to serve you, not to guide you. It is his
pocketbook, not his wisdom, that you will find useful. If he shows up someday
in a particularly foolish mood, you are free to either ignore him or to take
advantage of him, but it will be disastrous if you fall under his influence.
Indeed, if you aren’t certain that you understand and can value your business
far better than Mr. Market, you don’t belong in the game. As they say in poker,
“If you’ve been in the game 30 minutes and you don’t know who the patsy is,
you’re the patsy.”
Ben’s Mr. Market allegory
may seem out-of-date in today’s investment world, in which most professionals
and academicians talk of efficient markets, dynamic hedging and betas. Their
interest in such matters is understandable since techniques shrouded in
mystery clearly have value to the purveyor of investment advice. After all,
what witch doctor has ever achieved fame and fortune by simply advising “Take
two aspirins”?
The value of market
esoterica to the consumer of investment advice is a different story. In my
opinion, investment success will not be produced by arcane formulae, computer
programs or signals flashed by the price behaviour of stocks and
markets. Rather an investor will succeed by coupling good business judgment
with an ability to insulate his thoughts and behaviour from the super-contagious
emotions that swirl about the marketplace. In my own efforts to stay insulated,
I have found it highly useful to keep Ben’s Mr. Market concept firmly in mind.
Following Ben’s teachings,
Charlie and I let our marketable equities tell us by their operating results –
not by their daily, or even yearly, price quotations – whether our investments
are successful. The market may ignore business success for a while but
eventually will confirm it. As Ben said: “In the short run, the market
is a voting machine but in the long run it is a weighing machine.”
The speed at which a business’s success is recognized, furthermore, is not that
important as long as the company’s intrinsic value is increasing at a
satisfactory rate. In fact, delayed recognition can be an advantage: It may
give us the chance to buy more of a good thing at a bargain price. “
While we can’t
fight the “Market”, we might as well
enjoy it!
Cheers !!
Quote Of The Day :
”Sunrise Sunset' is about trying to get to a place where life is simple and not letting the stress and happenings in the
world get in the way of your happiness.“ by Benny
Cassette
Very beautiful photo
ReplyDeleteThanks Ali , :D
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