Graham underscores the importance of focusing on the intrinsic value of a business rather than its market price. He uses the metaphor of Mr. Market to explain the irrational behavior of the stock market. Mr. Market is a manic-depressive character who offers to buy or sell stocks at different prices every day, often driven by irrational exuberance or undue pessimism. Graham advises, 'The True investor is in that very position when he owns a listed common stock. He can take advantage of the daily market price or leave it alone, as dictated by his own judgment and inclination.' | Benjamin Graham | The Intelligent Investor

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Finance

The Value of Intrinsic Analysis

Graham underscores the importance of focusing on the intrinsic value of a business rather than its market price. He uses the metaphor of Mr. Market to explain the irrational behavior of the stock market. Mr. Market is a manic-depressive character who offers to buy or sell stocks at different prices every day, often driven by irrational exuberance or undue pessimism. Graham advises, 'The True investor is in that very position when he owns a listed common stock. He can take advantage of the daily market price or leave it alone, as dictated by his own judgment and inclination.'

-- Benjamin Graham