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.
I always thought I wanted to play professionally, and I always knew that to do that I'd have to make a lot of sacrifices. I made sacrifices by leaving Argentina, leaving my family to start a new life. I changed my friends, my people. Everything. But everything I did, I did for football, to achieve my dream.
I'm not really keen on comebacks. Eurythmics was an incredible thing. When I look back on that work, I feel very satisfied with it.
You may learn much more from a game you lose than from a game you win. You will have to lose hundreds of games before becoming a good player.
I would prefer to grow with the team inside Nintendo rather than taking anyone from outside. It would be a joy for me if someone who was working with me became a big success.
The moment I said I'd finished a book, I knew what would happen. There would be a bidding war, and I would end up with someone who'd got the fattest wallet, who had bought it because I'd written Harry Potter. That would have been why.
Scoring goals is a great feeling, but the most important thing to me is that the team is successful - it doesn't matter who scores the goals as long as we're winning.
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