Warren Buffett Accounting Book: Reading Financial Statements for Value Investing (Warren Buffett's 3 Favorite Books)

“Mr. Market is your servant, not your guide.” —Warren Buffett

Good news! The market is dropping

Do you like to shop for deals? I sure do! Who doesn’t like to buy a quality product at a cheaper price? I buy more stuff when prices are low. Then, when the price increases, I buy less, or none.

Price and value are completely different things. When Mr. Market is in high spirits and prices are high, we sometimes experience a bubble. It occurs when there is no sustainable relationship between the value and the price of a company.

Benjamin Graham has a quote: “In the short run, the market is a voting machine, but in the long run it is a weighing machine.” This profound statement signifies his ideology that accumulating more shares—or equity—in the business is paramount over the day-to-day activity of the market.