I was recently having lunch with a client after a lively discussion in our office. “I guess there is no magic bullet” is how he began lunch. It got me wondering why I had never put the idea of long-term investing in those exact words.
Joanna and I were on the golf course this weekend talking about how much we pay for gasoline these days. Exciting life we live. I had mentioned I recently saw regular unleaded at $1.27. I further mentioned seeing gasoline prices hit under 1 dollar back when I was in high school in the mid to late 80’s and how adults said “You will never see this again”. As it turns out, gasoline prices spent most of the next 15 years fluctuating between $1.20 and $1.50.
Mr. Market is a parable created by Benjamin Graham, often considered the “Father of Value Investing”. Mr. Market, you see, is a fictional character that offers to trade his stocks every day and at different prices. Mr. Market is an emotional and at times delusional person. He often lets the good times take his pricing too high and also lets a down market take his pricing well below intrinsic value. Below we are going to catch up with Mr. Market and see how the last 25 years have treated him.