The Intelligent Investor is an amazing book. It is like Shakespeare for the investing crowd. One of my favorite allegory is that of "Mr. Market" who is an obliging person who turns up every day at the shareholder's door offering to buy or sell his shares at a different price. The price quoted by Mr. Market often seems logical, but not all the time, sometimes it is ridiculous. The investor is free to trade with him on the agreed price, or ignore him completely. Mr. Market doesn't mind this, and will be back the following day to quote another price.
This anecdote taught me that I shouldn't judge the value of the shares that I bought to that of Mr Market's whim all the time. I should profit from market's "lack of good sense" rather than participate in it. I should concentrate on the actual performance of the companies, rather than be too concerned with Mr. Market's often illogical sentiments.
Although not all the time..
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