Price is what you pay. Value is what you get.
Interpretation
Price and value are distinct concepts; one refers to cost, while the other reflects worth.
This quote by Warren Buffett emphasizes the difference between the monetary cost of an item and its intrinsic value. When making decisions, especially in investments, it's crucial to look beyond the price to determine what real benefits or worth you are receiving in exchange for your money.
In practice
In a business meeting discussing the value of a new software tool.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
Scouting and player development is the key to year-in and year-out success, not the occasional lucky hit. There are no definitive answers in this game, no shortcuts. When you think you've got it all figured out, you can get humbled very quickly.
The individual who wants to reach the top in business must appreciate the might and force of habit. He must be quick to break those habits that can break him-and hasten to adopt those practices that will become the habits that help him achieve the success he desires.
Yes, Roger Hunt misses a few, but he gets in the right place to miss them.
Years ago I wanted to buy an apartment in New York City. I was a single female - I had gone through my divorce - I had three children, I was in show business and black. It was, like, impossible.
Everybody told me I was making a mistake by going into this business, but I know how to grow hair as well as I know how to grow cotton.
You should always have a product that has nothing to do with who you are or what people think about you... so that you never start thinking that your product is you, or your fame or your aura.
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