Emotionally unstable, Mr. market veers from years of euphoria when he can see only the favorable possibilities of industries,companies, and their stocks to profound pessimism when he’s so depressed he can see nothing but trouble ahead.
Mr. market persistently teases investors with gimmicks such as surprising earning, starting dividend announcements, sudden surges of inflation, inspiring presidential pronouncements, grim reports of commodity prices, announcements of amazing new technologies, distressing bankruptcies and even threats of war. These events come from his bag of tricks when they are least expected. Just as magicians use deception to divert our attention, Mr. Market’s very short-term distractions can confuse our thinking about investments.
“For Einstein simplicity was simply then the highest level of intellect. Everything about Warren Buffett’s investment style is simple. It is the thinkers like Einstein and Buffett, who fixate on simplicity, who triumph.” Mohnish Pabrai
“There are many historical figures that I admire greatly. Newton, Einstein, and Darwin among them.” Ed Thorp
“Mr. Market can be an old fool (or maybe a young fool) who, from time to time, becomes hysterical. Sometimes, in his madness, he sees ghosts. At others, he imagines the good fairy touching him with her long golden fingers” Barton Biggs
“Mr. Market’s most dangerous foil tactic is placing silly valuations on businesses, which encourages further speculations driving the tide so high that bubbles are formed.” Christopher Begg
This imaginary person out there- Mr. Market – is kind of a drunken psycho. Some days he gets very enthused and some days he gets very depressed. – Warren Buffett
“Investors can take advantage of Mr. Market’s shifting moods” Marathon Asset Management
“Successful investors must possess the mindset to take advantage of Mr Market’s bipolarity, and even come to appreciate it.” Seth Klarman