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Mr. Market

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Overview

Mr. Market is an allegory that helps explain daily fluctuations in the markets. Graham asks you to imagine that you’re one of two owners of a business, along with a partner called Mr. Market. The partner frequently offers to sell his share of the business or to buy your share. Graham says this partner is what today would be called manic-depressive, with his estimate of the business’ value going from very pessimistic to wildly optimistic.—Nilus Mattive

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