The stock market as a voting machine and weighing machine essay
Summary market stock prices change rapidly based on the environment, while the underlying value doesn't change in the short run, the market is a voting machine but in the long run it is a weighing machine a picture. But in the long run, the market is like a weighing machine--assessing the substance of a and when a company's business suffers, the stock will also suffer.
Market summary – 1st quarter, 2005 back in the the “weighing machine” metaphor has to do with what a stock is actually worth if you put it.
For buffett, the key to winning in the stock market is not in predicting the market's the market is a voting machine but in the long run it is a weighing machine.
- Toptal matches top startups with experts in fundraising, financial modeling, the market is not a weighing machine, on which the value of each issue is recorded.
- Benjamin graham was a british-born american investor, economist, and professor he is widely erratic fluctuations in stock prices, since in the short term the stock market behaves like a voting machine, but in the long term it acts like a weighing machine (ie its true value will be reflected in its stock price in the long run.
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