Updating Benjamin Graham’s Mr. Market

Aside from the notion of intrinsic value, Ben Graham’s parable of Mr. Market is probably the Dean of Wall Street’s most famous idea.

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Ben Graham, opened his course at Columbia Business School by saying, “If you want to make money on Wall Street, you must have the proper psychological attitude” and the Mr. Market analogy has proven to be a very successful way of transmitting the correct attitude for investors to adopt.

The Mr. Market parable remains relevant to this day and back at the beginning of 2015, Credit Sussie’s Michael J. Mauboussin presented a revised edition of the parable, backed by research from several behavioral and physiological studies at the Columbia...