Mr Market

Mr. Market is an allegory created by investor Benjamin Graham. In his book Security Analysis, Graham uses ‘Mr Market’ to explain the collective sentiment of all stock market investors.

“…Imagine that in some private business you own a small share that cost you $1,000. One of your partners, named Mr. Market, is very obliging indeed. Every day he tells you what he thinks your interest is worth and furthermore offers either to buy you out or to sell you an additional interest on that basis. Sometimes his idea of value appears plausible and justified by business developments and prospects as you know them. Often, on the other hand, Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly. ” 

Leave a Reply

Your email address will not be published. Required fields are marked *