Title: The Intelligent Investor - Wikipedia
Headings: The Intelligent Investor
The Intelligent Investor
Contents
Background and history
Analysis
Value Investing
Mr. Market
Determining Value
Reception
Editions
Book contents
2003 edition
See also
References
Further reading

Content: Mr. Market
One of Graham's important allegories is that of Mr. Market, meant to personify the irrationality and group-think of the stock market. Mr. Market is an obliging fellow who turns up every day at the shareholder 's door offering to buy or sell his shares at a different price. Often, the price quoted by Mr. Market seems plausible, but sometimes it is ridiculous. The investor is free to either agree with his quoted price and trade with him, or ignore him completely. Mr. Market doesn't mind this, and will be back the following day to quote another price. The point of this anecdote is that the investor should not regard the whims of Mr. Market as a determining factor in the value of the shares the investor owns. He should profit from market folly rather than participate in it. A common fallacy in the market is that investors are reasonable and homogenous, but Mr. Market serves to show that this is not the case. The investor is advised to concentrate on the real life performance of his companies and receiving dividends, rather than be too concerned with Mr. Market's often irrational behavior. Determining Value
In The Intelligent Investor, Graham explains the importance of determining value when investing.