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A famous stock market parable: Mr. Market

One of the greatest stock market parables was given by the famous Benjamin Graham and reiterated by Warren Buffett in his 1987 shareholder letter. It’s a parable that puts the day to day, week to week and month to month stock market movement into perspective. Below is a copy of that parable from Mr. Buffett’s 1987 shareholder letter. We hope you enjoy it as much as we do! The why is best explained by the great Benjamin Graham.  Warren Buffett quoted it in his 1987 shareholder letter. The following is taken from that letter (our emphasis added): 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,
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Categories: Markets.

One of the most important things you should do as an investor . . . (Icahn and Buffett)

One of the biggest issues with investors is expectations. We live in a world where people want every month, every quarter, every year to be profitable. This short term thinking destroys capital. I’ve seen it over and over again. People buy what’s hot in the market  and get burned when it falls. It’s THE vicious cycle for losing money.  So what should you do? Below are two of the most successful investors, Carl Icahn and Warren Buffett. They tell you in a very short and concise way what you should do. The problem is that it’s completely contrary to what everyone else in the world of investing actually does. Listen to Icahn and read Buffett and then decide what you’re going to do and how you’re going to act. First, Carl Icahn (for the whole interview with Icahn, click here) Second, Warren Buffett.     So you can do two things.
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Categories: Markets and Strategy.
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