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Benjamin Graham / Warren Buffet have said [1] that in the short run the stock market is a voting machine, but in the long run, it’s a weighing machine. 1. Attr
by senordevnyc 7y ago
Benjamin Graham / Warren Buffet have said [1] that in the short run the stock market is a voting machine, but in the long run, it’s a weighing machine.
1. Attribution is murky: https://quoteinvestigator.com/2020/01/09/market/ https://quoteinvestigator.com/2020/01/09/market/
- Joker_vD 7y ago"Weighing machine" in the sense of "in the time it takes the fat ones to thin down, the thin ones die out", or?..
- rmrm 7y agoStrictly in the sense that over time it measures something. In the short term peoples opinions matter, in the long run company performamce matters. The stock price relates to earnings and capital efficicency etc over the long haul.
- bo1024 7y agoThat makes sense for one company's stock price versus another's. But it doesn't help me understand how the average behaves...