In the works of Buffett's mentor, Graham, many investment philosophies are mentioned.

For example, the concept of margin of safety, buying stocks is the same as buying a company, and so on.

Among them, there is a concept that is not very eye-catching, but it has a significant impact on our investment, and that is Mr. Market.

Mr. Market

Graham likens the ups and downs of the market to Mr. Market.Mr. Market is a manic, energetic, and capricious individual whose daily job is to run over and report prices to us.

- Sometimes he is extremely optimistic, quoting a very high price;

- Sometimes he is extremely pessimistic, quoting a very low price.

Some friends are particularly susceptible to the influence of Mr. Market.

- When Mr. Market quotes a high price, they tend to become very optimistic, catching his mood;

- When Mr. Market quotes a low price, they tend to become very pessimistic, also catching his mood.

In fact, those with a certain level of psychological quality, or rather, those with investment experience, are not too affected by Mr. Market.Instead, they have their own investment system and adhere to their principles:

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- Buy when Mr. Market quotes a very low price, far below the value.

- Sell when Mr. Market quotes a very high price, far above the value.

- At other times, just ignore Mr. Market's quotes.

Of course, it's easier said than done.

The Real Mr. Market

Why is that?The "Mr. Market" we refer to here is a fictional character.

However, when it comes to actual investing, especially during times of significant market fluctuations, some very well-known individuals or people around us often take on the role of Mr. Market.

For instance, during the bull market of 2015, many people were bullish, proclaiming statements like "5,000 points is the new starting point for the bull market."

Moreover, these individuals are often quite famous, and many investors are easily influenced by them.

Furthermore, during periods of short-term market panic, various extreme viewpoints also emerge.For instance, in the past two years, the education sector has experienced a significant downturn, with investors concerned about whether the policies affecting the education industry might also be applied to other sectors.

For a while, there were rampant negative news and messages, such as the gaming industry being abolished, and the claim that baijiu (Chinese liquor) causes cancer.

Among them, many were published on the websites of authoritative institutions.

Some of these contents are indeed factual, like the carcinogenic nature of alcohol. However, when viewed over a longer period, they have little impact on the industry's profitability.

It is well-known that both tobacco and baijiu are harmful to human health, yet this does not affect their high profit margins, which are quite beneficial to shareholders.

These are typical industries that are "detrimental to consumers but advantageous to shareholders."In the short term, these news and content can indeed affect investors' decisions.

Under panic, investors tend to perceive most news as bearish.

This is what some veteran stock market participants say:

"In a bear market, all news is bearish; in a bull market, all news is bullish."

What should we do?

In such a situation, what should we do?In fact, during a bear market, when the market is falling, no matter what is said, everyone will panic and worry.

Once the market rebounds and forms a smile curve, people will emerge from their panic.

This kind of rationality and maturity in mentality cannot be truly experienced just by listening to others.

It requires one's own investment practice with real money, and only after experiencing the ups and downs of the market can one figure it out.

Just like not getting into the water and only reading books, one will never learn how to swim.

Rich investment experience is not something that can be achieved overnight; it requires the accumulation of time.

Even Buffett started investing in his childhood, accompanied by his father, meeting investment gurus, and by the time Buffett became an adult, he already had many years of investment experience.Ordinary folks like us should start investing early too～

Even if we don't have a lot of capital, we can set aside a portion for regular investments to gradually gain experience. This way, when we have more funds, we'll be better prepared to handle the ups and downs of the market.

I will also always be here to accompany everyone:

- To make a solid investment plan and strictly follow it.

- To keep updating daily and provide good data.

- To try my best to answer everyone's questions.