Market fluctuations are opportunities for value investors from "summary" of The Little Book of Value Investing by Christopher H. Browne
Value investors know that the stock market is not always rational. Prices can swing wildly based on short-term news, emotions, and other factors that have little to do with a company's true value. This creates opportunities for value investors to buy stocks at a discount when the market overreacts to bad news or temporarily loses sight of a company's long-term potential. Market fluctuations can cause stock prices to deviate significantly from their intrinsic value. This means that value investors can find bargains when the market is overly pessimistic about a company's prospects. By carefully analyzing a...
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