Key Takeaways
- Warren Buffett has often drawn on the concept of a “Mr. Market,” as created by his mentor, Benjamin Graham.
- The “Mr. Market” metaphor is intended to teach you to view market volatility more like a manic partner’s mood, rather than as a guide to the real value of stocks.
- Successful investing often means doing the opposite of the crowd: buying quality businesses when fear drives prices down and selling when fear of missing out (FOMO) pushes them too high.
Buffett’s most important investment advice often involves a peculiar character investors need to understand: “Mr. Market is there to serve you, not to guide you. It is his pocketbook, not his wisdom, that you will find useful.”
“Mr. Market” is an invention of…
