12. The Stock Market Is A Weighing Machine cover art

12. The Stock Market Is A Weighing Machine

12. The Stock Market Is A Weighing Machine

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In his famed parable Mr. Market, Benjamin Graham said, “In the short run, the market is a voting machine but in the long run it is a weighing machine.” As investors we are in stock market for multiple decades. A publicly traded companies growing revenue, profits, and consistent cash flows may not be recognized by the market in the short term. A company can fall out of favor for any number of reasons. Over the long term though, which is all that matters, the market will reward companies with a growing intrinsic value. In the meantime, we can use this to our advantage, as it gives us an opportunity to buy more of a company at a discount. Tune in for more, thank you for listening!

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