It is his pocketbook, not his wisdom, that you will find useful. If he shows up someday in a particularly foolish mood, you are free to either ignore him or take advantage of him, but it will be disastrous if you fall under his influence. As you can see from the lesson from Mr. Market, you can create wealth through the stock market. As I stated in many of my past articles, wealth is created by the long-term ownership of growing companies, both your own growing practice and stock in publicly held, profitable firms. If you buy stock in a well-established company that is the clear market leader when compared to its competitors, you will be well rewarded.
Good research can identify companies that meet the above criteria.
Because of market volatility, there will be times when you can purchase these companies at below real value. When temporary problems hit the newsstands, panic selling by the general public often causes stock prices to plummet even though the news has no real bearing on the company itself. These times allow the wise investor to step in and purchase stock at bargain terms, often well below real value. Owning equities is not an exercise in market timing. Clearly, staying invested is more profitable over the long haul.