The Plunger & Mr. Market
Thats me and my fellow friends, Benjamin Graham and Warren Buffett, introducing me to Mr. Market.
No good Value investor escapes the usual talk of Mr. Market and for good reason.
The fourth stage of your plunge hunting is a foggy environment, with cries of fear and greed trying to infect your core, as the fog clears we see someone familiar to us, our business partner Mr. Market.
Your partner, a concept created by Benjamin Graham - the father of Value Investing, is charged with bringing you price quotations, but being in that line of work he suffers terribly from checkitis and switchitis.
Daily he brings you the list prices of all the investments you can think of, and he will trade them with you.
Being an emotional roller-coaster usually he is calm and assertive on quotations, but often times lets his emotions get in the way - in euphoria everything he lists is expensive and high – in depression everything is priced low.
The good thing about such a partner, is that you can reject or accept any quotation as you see fit, and your faithful partner will come back tomorrow for a new set of quotations.
Equipped with a plunger you will pull the relevant information for your analysis and you will match it with Mr. Market’s quotations.