Justin Urquhart Stewart: Mr Market - 70 and still going strong

'Best analogy in finance'

clock • 4 min read

Times may have changed since Ben Graham first introduced 'Mr Market' to the world in 1949 but, writes Justin Urquhart Stewart, the analogy has aged rather well

Imagine you own a small business, along with a partner - Mr Market. Your working relationship is unusual, to say the least. Every day, Mr Market walks in and tells you how much he thinks your share of the firm is worth. He then gives you a chance to buy more of the business, or to sell some of your shares. You can choose to buy, sell or do nothing. Once you give him an answer, Mr Market clocks off for the day. There are other odd things about Mr Market. First, he is a creature of habit. He does not care what you do - buy, sell or do nothing and he will still come back tomorrow, name a pr...

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