30-05-2013, 11:57 AM
Yes. People are mostly clouded by emotions of greed and fear. Currently, it is fear playing out in making Mr Market offer lower prices than before. It is when extreme pessimism builds up will meet with great opportunities for potential value buys at lower prices.
The lower the market prices offered by Mr Market, the lesser the risk and thus higher the returns, as one can buy with greater margin of safety the lower the price gets assuming he has bought below his estimated intrinsic value per share of a company.
The lower the market prices offered by Mr Market, the lesser the risk and thus higher the returns, as one can buy with greater margin of safety the lower the price gets assuming he has bought below his estimated intrinsic value per share of a company.