Thursday, March 16, 2017

Stock Market is a Voting Machine

Picture shows an electronic voting machine and a weighing scale
Stock Market is a Voting Machine in the Short Run

"But I think it is very easy to see what is likely ti happen over the long term. Ben Graham told us why: 'Though the stock market functions like a voting machine in the short run, it acts as a weighing machine in the long run.' Fear and greed play important roles when votes are being cast, but they don't register on the scale."
Warren Buffett