"In the short run, the market is a voting machine, but in the long run, it is a weighing machine."
— Benjamin Graham
In The Short Run The Market
In the short run, the market is a voting machine, but in the long run, it is a weighing machine.
About this quote
This metaphor first appeared in Security Analysis (1934), coauthored with David Dodd, and became one of the most enduring ideas in investment theory. In the short run, a stock's price reflects whatever investors feel about it — enthusiasm or panic; in the long run, price converges toward underlying business value. Warren Buffett has cited this distinction as central to his investment philosophy.
Source
Security Analysis, Chapter 1 (1934)
