Ahhh. Thank you, I finally get it.I've interpreted it to mean that a) in the short term the total return of a stock is primarily based upon what other market participants believe it is worth and, b) in the longer term, more of the total return is based upon real measurements of how much the company made, or distributions to shareholders in the form of buybacks, dividends or payments upon being taken private.I've never understood this quote; what did he mean by 'weighing machine'?
"in the short term the stock market is a voting machine, but in the long term it is a weighing machine" --Benjamin Graham
In 'actionable' terms ... take the long view.
Statistics: Posted by Lawrence of Suburbia — Tue Jun 11, 2024 2:02 am — Replies 25 — Views 1728