Seth Klarman On Mr. Market And The Market Environment

The parable of Mr. Market forms the basis of any value investors’ understanding of the stock market environment at different times and securities prices. Originally devised by the godfather of value investing, Benjamin Graham, Mr. Market has since been used by all of Graham’s followers, and many more, to describe the stock market environment and how investors should react during periods of turbulence. [klarman] Stock Market Environment in 2000 In December 2000, Seth Klarman to the investors of his hedge fund, Baupost just as the dot-com bubble had started to burst and describe the stock market environment, he leaned upon…