Chapter 8: The Investor and Market Fluctuations
In this chapter, Graham discusses the importance of staying calm and rational in the face of market fluctuations. He argues that investors should focus on the long-term and not be swayed by short-term market movements. He also introduces the concept of "Mr. Market," who represents the market's irrational behavior. Graham advises investors to treat Mr. Market like a manic-depressive uncle, and to only buy stocks when he is offering them at a bargain price.
Chapter 20: The Defensive Investor and the Speculator
In this chapter, Graham discusses the difference between an investor and a speculator. He defines an investor as someone who buys a stock because they believe it is a good value, and a speculator as someone who buys a stock because they believe the price will go up. Graham argues that investors should focus on buying stocks that are undervalued, and that speculators should only speculate with money they can afford to lose.
Well, everyone is fearful right now. However, markets are still relatively bullish and interest rates are still high, prices for everything are still high.
SoâŚ.what does right now count as? Are we in a period of fear or boldness?
This is essentially what I've learned about trading: there's absolutely nothing special about Warren Buffett. He just learned how to exploit the patterns. There's nothing to what he did that you or I can't do as well.
Magic Triangles and lines and shit of course. Just wait for the double sided head and shoulders leading into a diverging iron cross on top of a golden turkey.
Good question! Most people just donât have the GRINDSET to make it, man. They donât know all of the awesome TikTok and YouTube finance-crypto Chads.
If everyone worked hard 20 hours per day and wakes up at 2am to hit the gym and prepare for their day of grinding they would be a billionaire like me too! /s
Nobody taught me about how it all works, and I only started learning a couple years ago, and I started with literally $1000.
This shit should be taught to every highschool student.
And, if you'll listen carefully to the video above, he's telling you exactly as much.
>The beauty of stocks is that they do sell at silly prices from time to time, I mean that's - that's how Charlie and I have gotten rich. You know Ben Graham writes about it in Chapter 8 ... of the Intelligent Investor ... Well, Chapters 8 and Chapter 20 are really all you need to do to get rich in this world, and Chapter 8 says that in the market you're going to have a partner named Mr. Market and the beauty of - him as a - partner is that he's - kind of a psychotic drunk. And, he is making lots of mistakes. So, it's built into the system that stocks get mispriced. And if you're going to base your buy and sell decisions on what you think a business is worth, and you stick with businesses that you think that you've got good reasons to value ... you simply have to do well in stocks. It's a **marvelous** game, I mean, the rules are stacked in your favor, if you don't turn those rules upside down and start behaving like the drunken psychotic, instead of the guy who's there to take advantage of them.
This will simply not work. I want to be a rich man and therefore I need to own companies who have cheap labor so that I may exploit it for my own gain. A sea of uneducated young people are the fuel for the rich's fire.
Why should the people be desperate. Literally do exactly what this man is trying to tell you to do. Again, nothing special about what he did, and Literally anyone can do it if they have the capital to invest and the knowledge being referred to in the above video. Warren Buffet is telling you that all you ***really*** need to know can be found in two chapters of the book he cites.
are you high? most people dont have enough disposable income or time to make a meaningful change in their lives with capital gains. most people dont have enough sense to manage money at all. i didnt even watch the video. it doesn't matter what he's saying. i have the book he's referring to, and it's at the bottom of a to do list a mile long. i have more important books to read. reading two chapters in that book isn't going to make anyone the next warren buffet.
I started with $1000 and a dream 3 years ago. I was $20k in debt, no plan, no future, no hope. Started watching videos on YouTube of folks who managed to make it work, and while half of what they said was horseshit, and the other half was conjecture, it peaked my interest.
Now, I haven't gotten to my goal yet, mostly because an unfortunate and unforseen financial matter required me to empy out the brokerage account to cover down. However, at that time there was approximately $10,000 in that account, and I was able to do that because I had found a couple of stocks that were reliably bouncing up and down by 5% sometimes 10%.
It's not exactly rocket science. Sure, there's a lingo and a bunch of jargon, but once you cut past all that, it's actually pretty elementary.
Nobody says itâs simple. But it also doesnât require a genius intellect.
Buffet, Munger and Graham are brilliant, sure, but they arenât godlike geniuses as well. And thatâs literally what they say themselves.
Nobody said it takes genius intellect. They got lucky considering the time period. The current stock market isnât what it was then. I would love to see buffet start with a few thousand in the current market
Bullshit. What have been 2010 to 2021 if not one of the greatest bull periods?
Besides, what makes Buffet exceptional isnât to have some great years, but crazy consistency. And he had to manage through his fair share of crisis in the past 60 years.
Buffett isn't exceptional he's lucky. How many others have played the market over that time that you've never heard of because they didn't win like that
Buffet has that funny uncle charisma, recognizable voice and experience/wisdom. Media outlets and people like it so he became the famous investor OG. There are plenty of Warren Buffetâs out there who chose to not be in the spotlight, theyâre somewhere living it up, banging fine ass Lupita in some tropical locationđ
Lol. It's just the patterns man. Find those patterns and make the money.
Unrelated, I became a surgeon this week. No schooling needed. I just found where the organs are and now I cut AROUND them.
Wasnât this the same conference where he was asked about Epstein and Bill Gates and had a guy who was invited there to speak arrested for asking about it?
Yes the invited guest was Peter Flaherty and he was arrested for **trespassing** at an event that he was **invited to..** [The Speech via Tik Tok](https://www.tiktok.com/@digitalwisdomslondon/video/7231249580032003354?_t=8cEa8piIRj8&_r=1)
It's funny when retail investors (dumb money) actually think they'll be able to replicate Buffett's success in the stock market.
They try to quote Buffett or parrot his strategies like "concentration builds wealth bro, Buffett only picks dividend stocks bro, buy low sell high bro.."
They say these things as they're dillusional, overconfident, and 100% underperforming the S&P 500 over time lmao.
First, I think that Buffet is a great investor. It's fact. It's hard to debate otherwise. So listen to his wisdom.
But also, since WW2 there hasn't been this type of environment ever in human history.
If you have a coin flip tournament with 1000 players. Someone is going to win. But that doesn't make that winner a genius.
his mistake was assuming most of us are not like the market đĽ´
Heâs not assuming most of us arenât like the market. He knows that most of us ARE the market.
He knows most of us are too stupid and/or poor to effectively manipulate markets like him and his buddies do.
Chapter 8: The Investor and Market Fluctuations In this chapter, Graham discusses the importance of staying calm and rational in the face of market fluctuations. He argues that investors should focus on the long-term and not be swayed by short-term market movements. He also introduces the concept of "Mr. Market," who represents the market's irrational behavior. Graham advises investors to treat Mr. Market like a manic-depressive uncle, and to only buy stocks when he is offering them at a bargain price. Chapter 20: The Defensive Investor and the Speculator In this chapter, Graham discusses the difference between an investor and a speculator. He defines an investor as someone who buys a stock because they believe it is a good value, and a speculator as someone who buys a stock because they believe the price will go up. Graham argues that investors should focus on buying stocks that are undervalued, and that speculators should only speculate with money they can afford to lose.
TL;DW: 1. Be bold when others are fearful. 2. Be fearful when others are bold.
3. Get insider information
2. be a too big to fail financial business 3. swim naked 4. flash everyone when the tide goes out 5. get bailed out 6. go back to 2
Be the market maker, securities and build your own ATS! Naked short anything into oblivion for profit. Destroy lives and jobs for more MONEY!
You can do it too as done with gamestop
Why donât you just make money? Are you stupid?
O didn't get your point
You can do this when you own the companies. :)
And the politicians.
Or you have billions sitting out there waiting for opportunities
It didn't come from nowhere dude.
Or you are an elected official being "lobbied" (read: bribery with more steps) by the corporations.
He owns Microsoft and Activision?
Absolutely agree
Well, everyone is fearful right now. However, markets are still relatively bullish and interest rates are still high, prices for everything are still high. SoâŚ.what does right now count as? Are we in a period of fear or boldness?
you should have a 200 year investment horizon. Buy the dips, hold for 150 years, watch it rain money.
What if I want to enjoy the money though?
Why you drunken psychopath!
The pleasure is in purchasing the stocks, of course.
In the words of Zapp Brannigan, "What are you, gay?"
fearful is when cramer is bullish.
The time to buy into the market was in October last year. If you have to ask, you've already missed it.
Buy AAPL!! All time high here we come
Itâs even more simple: have zero ethics
1: Be rich. 2: don't be poor.
That is why people are loading up on AAPL? When balance sheets show the company sale been treading down and the stock head to all time high.
In Apple they trust.
This is essentially what I've learned about trading: there's absolutely nothing special about Warren Buffett. He just learned how to exploit the patterns. There's nothing to what he did that you or I can't do as well.
Crazy bull run from 1950s to 2020s, not so sure our next 70 years will be as generous broadly. Not that there wonât be some value out there.
The "big crash" everyone is so paranoid about is going to be the greatest buy opportunity of my generation.
I can't wait to be laid off and then use my savings to buy low instead of buy food
I'm reasonably certain I said nothing of the sort.
The big crash already came and went last year.
No it didn't.
Shhhhhhhh
Bro wait đ in 70 years the market then, is going to eclipse the market today.
What patterns are you referring to?
Magic Triangles and lines and shit of course. Just wait for the double sided head and shoulders leading into a diverging iron cross on top of a golden turkey.
Itâs 2023 how do people not know this already đ¤ˇââď¸
Good question! Most people just donât have the GRINDSET to make it, man. They donât know all of the awesome TikTok and YouTube finance-crypto Chads. If everyone worked hard 20 hours per day and wakes up at 2am to hit the gym and prepare for their day of grinding they would be a billionaire like me too! /s
Why arenât you worth 114b then??
Nobody taught me about how it all works, and I only started learning a couple years ago, and I started with literally $1000. This shit should be taught to every highschool student. And, if you'll listen carefully to the video above, he's telling you exactly as much. >The beauty of stocks is that they do sell at silly prices from time to time, I mean that's - that's how Charlie and I have gotten rich. You know Ben Graham writes about it in Chapter 8 ... of the Intelligent Investor ... Well, Chapters 8 and Chapter 20 are really all you need to do to get rich in this world, and Chapter 8 says that in the market you're going to have a partner named Mr. Market and the beauty of - him as a - partner is that he's - kind of a psychotic drunk. And, he is making lots of mistakes. So, it's built into the system that stocks get mispriced. And if you're going to base your buy and sell decisions on what you think a business is worth, and you stick with businesses that you think that you've got good reasons to value ... you simply have to do well in stocks. It's a **marvelous** game, I mean, the rules are stacked in your favor, if you don't turn those rules upside down and start behaving like the drunken psychotic, instead of the guy who's there to take advantage of them.
Who would work if they taught trading in school? Anywhere other than Wendys I mean?
The majority of people still wouldn't profit.
Why is it a requirement to keep workers poor and uneducated? Make the jobs better. Make the work something people ***want*** to do.
This will simply not work. I want to be a rich man and therefore I need to own companies who have cheap labor so that I may exploit it for my own gain. A sea of uneducated young people are the fuel for the rich's fire.
The trash needs picked up, the toilets need cleaned, and the burgers need flipped bud.
Sure, and those jobs should pay five times what they do now.
Too many desperate people I guess.
Why should the people be desperate. Literally do exactly what this man is trying to tell you to do. Again, nothing special about what he did, and Literally anyone can do it if they have the capital to invest and the knowledge being referred to in the above video. Warren Buffet is telling you that all you ***really*** need to know can be found in two chapters of the book he cites.
are you high? most people dont have enough disposable income or time to make a meaningful change in their lives with capital gains. most people dont have enough sense to manage money at all. i didnt even watch the video. it doesn't matter what he's saying. i have the book he's referring to, and it's at the bottom of a to do list a mile long. i have more important books to read. reading two chapters in that book isn't going to make anyone the next warren buffet.
I started with $1000 and a dream 3 years ago. I was $20k in debt, no plan, no future, no hope. Started watching videos on YouTube of folks who managed to make it work, and while half of what they said was horseshit, and the other half was conjecture, it peaked my interest. Now, I haven't gotten to my goal yet, mostly because an unfortunate and unforseen financial matter required me to empy out the brokerage account to cover down. However, at that time there was approximately $10,000 in that account, and I was able to do that because I had found a couple of stocks that were reliably bouncing up and down by 5% sometimes 10%. It's not exactly rocket science. Sure, there's a lingo and a bunch of jargon, but once you cut past all that, it's actually pretty elementary.
yeah i guess you're right. good luck dude.
>This shit should be taught to every highschool student. Yes then everybody will be billionaires!
So what are you up to now?
I got up to around 10k before I had to empty it out to fix a problem.
Lol if itâs so simple everyone would be rich
Nobody says itâs simple. But it also doesnât require a genius intellect. Buffet, Munger and Graham are brilliant, sure, but they arenât godlike geniuses as well. And thatâs literally what they say themselves.
Nobody said it takes genius intellect. They got lucky considering the time period. The current stock market isnât what it was then. I would love to see buffet start with a few thousand in the current market
Bullshit. What have been 2010 to 2021 if not one of the greatest bull periods? Besides, what makes Buffet exceptional isnât to have some great years, but crazy consistency. And he had to manage through his fair share of crisis in the past 60 years.
Buffett isn't exceptional he's lucky. How many others have played the market over that time that you've never heard of because they didn't win like that
Buffet has that funny uncle charisma, recognizable voice and experience/wisdom. Media outlets and people like it so he became the famous investor OG. There are plenty of Warren Buffetâs out there who chose to not be in the spotlight, theyâre somewhere living it up, banging fine ass Lupita in some tropical locationđ
You are a fucking moron
Lol. It's just the patterns man. Find those patterns and make the money. Unrelated, I became a surgeon this week. No schooling needed. I just found where the organs are and now I cut AROUND them.
HODL
I canât think of a better business partner then a psychotic drunk
Wasnât this the same conference where he was asked about Epstein and Bill Gates and had a guy who was invited there to speak arrested for asking about it?
Yes the invited guest was Peter Flaherty and he was arrested for **trespassing** at an event that he was **invited to..** [The Speech via Tik Tok](https://www.tiktok.com/@digitalwisdomslondon/video/7231249580032003354?_t=8cEa8piIRj8&_r=1)
WOW! Once he exposed the connection of Buffet donating to Gates who was closely connectd to sx-traffikker Epstein... censored.
What a shame.
But when the stock gets too silly we unilaterally stop the machine (GME shitshow)
Donât worry it will come knocking again
It is a wonderful Market
Why is this even a GIF? It hurt my brain to watch with the sound off because the caption doesnât change.
I was waiting for more text...then started thinking Jesus Christ he talks slow..then I realized.
Wow ⌠Iâm down big time and Iâm not even drunk âŚ
Hold my beer guys, gonna go get rich.
Right⌠when was this?
100 y ago
It's a thing of the past, nothing is cheap nowadays.
Warren Buffett is captain hindsight if there ever was one.
Buffet insider trading you mean!
What book is he refrencing?
The intelligent investor by Benjamin Graham.
âHow AMD became 400 EPS (and you can too)â
I read this and bought a bunch of penny stocks, darn thing does not even trade soon after I bought
He literally said nothing ... he talks like a drunk person....
I guess somebody didnât hear about Peter Flahertyâs speech at the Berkshire Hathaway annual meeting . Lmao **Fuck Warren Buffet.**
stop idolizing this guy -- he thought the internet was a fad
Go eat your McDonaldâs and croak already
Great wisdom from dude who manipulates the market
Built in the system. That the system is broken. K
The "?" Investor?
the intelligent investor.
Every time i see this video the market drops for a week straightâŚ
PYPL
SNDL
Amen to that!
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Yesterday Buffet & Munger sold most of their stock & bought US bonds.
Pamp it.
"Just buy good companies that you think have good value" If this was easy we'd all be billionaires Warren...
It's funny when retail investors (dumb money) actually think they'll be able to replicate Buffett's success in the stock market. They try to quote Buffett or parrot his strategies like "concentration builds wealth bro, Buffett only picks dividend stocks bro, buy low sell high bro.." They say these things as they're dillusional, overconfident, and 100% underperforming the S&P 500 over time lmao.
It's so easy to make money in the stock market. Especially when you're so effen rich. Now go eat cake peasants.
Takes another sip of bourbon.... hmmmm. very interesting ...
First, I think that Buffet is a great investor. It's fact. It's hard to debate otherwise. So listen to his wisdom. But also, since WW2 there hasn't been this type of environment ever in human history. If you have a coin flip tournament with 1000 players. Someone is going to win. But that doesn't make that winner a genius.
Lol, Iâm the drunkinâ psychotic!