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

Tuesday, March 14, 2017

Price is What You Pay and Value Is What You Get

Picture shows a weighing scale with two weights price and value on the two sides of the balance
Price is What You Pay and Value Is What You Get

"Long ago, Ben Graham taught me that "price is what you pay; value is what you get." Whether we are talking about socks or stocks, I like buying quality merchandise when it is marked down."
Warren Buffett