The folly of unpredictable market pricing

Imagine walking into a shop selling "money-printing" machines. These machines, much like companies in the stock market, have varying degrees of cash generation, growth potential, and maintenance needs. Investors must understand not only the historical performance of these machines but also assess how much they need to keep running. In this analogy, the price of these machines is influenced by unpredictable factors, much like the daily fluctuations in the stock market. However, savvy investors focus on the intrinsic value of these businesses, embracing volatility as an opportunity rather than...