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The market is a voting machine in the short term and a weighing machine in the long term from "summary" of The Intelligent Investor, Rev. Ed by Benjamin Graham

In Wall Street, what matters most in the short run, as Benjamin Graham famously put it, is not the financial state of corporations, but the psychology of the people who buy and sell stocks. The market, he said, is a voting machine in the short term, where countless individuals express their opinions, hopes, and fears through their buying and selling decisions. This leads to daily fluctuations in stock prices that are often driven more by emotions than by underlying business fundamentals. In essence, the stock market in the short term is like a popularity contest, where stocks go up or down based on investor sentiment rather than intrinsic value. This can create opportunities for savvy investors who are able to detach themselves from the crowd and think independently. By focusing on the long-term prospects of a company rather than its short-term stock price movements, these investors can take advantage of mispricings caus...
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    The Intelligent Investor, Rev. Ed

    Benjamin Graham

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