Nov 18, 2025, 12:43:55 PM IST

Price fluctuates constantly due to news, sentiment and the mood of millions of traders. Value, however, is the earning power of a business and changes much more slowly.

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When investors look at prices every day, they start treating temporary moves as important. Random daily fluctuations get mistaken for meaningful information.

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In the short term, prices can swing wildly without any change in fundamentals. Over months or years, price and value tend to converge, not day to day.

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More money is lost due to impatience than because of actual bear markets. Frequent checking increases the urge to act during dips or corrections.

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If a fund is down 2% today, it tells you nothing relevant as a long-term investor. Responding to daily fluctuations rarely aligns with long-term financial goals.

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