Moderna Investors, Meet Mr. Market
If you had an eccentric friend with a reputation for impulsiveness and hyperbole, you'd definitely think twice before agreeing with their appraisal of their latest obsession, like the value of an up-and-coming stock. And in fact, as an investor, you do have this friend. If you're new to the game and don't know him yet, his name is Mr. Market.
Mr. Market is the personification of the market itself, and he provides a useful perspective by which to guide your investing. Some days, he gets hyper-excited about a stock and offers to sell it to you (or buy your shares) at prices that are far higher than a less mercurial analyst might calculate. Other days, he gets upset and completely loses hope in the same stock, offering to sell it for peanuts even if it's probably worth a bit more.
Thinking of the market as an overexcitable friend may seem silly, but it's an important reminder that your investing focus needs to be on the long term, rather than driven by day-to-day price movements. Understanding when, how, and whether to take advantage of Mr. Market's "moods" is key to excelling at investing. Let's get to know Mr. Market a bit better by seeing how he thinks about a hot stock like Moderna (NASDAQ: MRNA).
Source Fool.com
