IFB261: Mr. Market & Margin of Safety: Our Two Favorite Mental Models

Welcome to the Investing for Beginners podcast! In today’s episode, we will discuss two of our favorite mental models that every long term investors should have! These two concepts are undeniably not new and came from Graham’s seminal book, the Intelligent Investor but these mental models are timeless and will always be apt no matter what economic cycle we are. As long as human emotions and behaviors are in play in the stock market, these concepts will stay so listen on!

Timestamps in the episode:

-Back to basics: What’s the stock market really is. [02:30]

-The Mr. Market mental concept: the stock market personified. [04:40]

-How to handle the ups and downs of Mr. Market. [09:28]

-The true edge of individual investors. [13:15]

-Margin of safety: paying less for what’s its worth! [14:14]

-Patience and thinking more of the downside than the upside in investing. [20:04]

Note: Timestamps may differ and are approximate, depending on your podcast player.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

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You can find the transcript of today’s show below:

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