Arborbridge wrote:pyad wrote:
PSN is down so far today. Has "Mr Market" changed his mind yet again, all within 48 hours? If so he is staggeringly fickle, to the extent that he is totally unstable and deserves no faith whatsoever. The idea that very short term price movments are rational and that consequently they tell investors something which should influence their buying - (in an extremely long term strategy!) - is so obviously incorrect that it's hard to believe anyone who's been here more than five minutes can still think that.
I can completely relate to that. There is usually little or no relationship between company health and short term price movements. I think it's adviseable to say "usually", though
The longer the time expands from "short term" upwards, the less this becomes true : it's the voting machine versus the weighing machine analogy of WB in practice.
Arb.
Indeed Arb, though I think it was Benjamin Graham with the voting machine v. weighing machine analogy.
The short term in this thread is merely hours, way short enough to be meaningless and reasonless.