Co-Produced with Dividend Sensei
Benjamin Graham, one of the best eight investors in history (and the father of value investing, which seven of those eight have used to generate their incredible returns) famously said,
“In the short run, the market is like a voting machine -tallying up which firms are popular and unpopular. But in the long run, the market is like a weighing machine - assessing the substance of a company.”
What Graham meant is that in the short term the market is dominated by sentiment, often irrationally pricing stocks based on one popular