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'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' - Benjamin Graham Voting machines are susceptible to cults. W
by civilized 4y ago
'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' - Benjamin Graham
Voting machines are susceptible to cults. Weighing machines less so.
At the end of the day, stocks exist to return dividends to their shareholders. Those that don't will eventually become worthless, no matter how fervent the cult around them.
- Bubble_Pop_22 4y agoThe 'long run' is just a bunch of 'short runs' glued together in an infinite sequence. Given that what Graham said does not falsify what the author of this piece claims. Sure maybe the cults would rotate, so today is all about Tesla and Gamestop tomorrow will all be about cryonics and life extension companies, but there will always be a certain % of cults in the stock market, and they'd dominate the conversation because of the meteoric rise in the price of the stock, that would compel people to think about how their lives would have changed had they thrown their money at it in the early days.
- civilized 4y agoNot saying the author is wrong, just pointing out that his viewpoint has been around for a while and is part of a larger framework for thinking about investing.