The Daily Buffett

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Price and Value

November 1st

Price is what you pay. Value is what you get.

Warren Buffett

In the realm of investing, the monetary cost, or the price, is merely what we part with for a share of a company. However, the yield, or the value, is not always proportional to the price. There are instances where we gain more, and cases where we gain less. The art and science of investing lie in discerning these disparities, acknowledging that price and value don’t always correspond.

This principle can be found beyond the financial markets. In life, the 'price' we pay could be in the form of time, effort, or emotional input. The 'value' we receive could take the shape of knowledge, experience, relationships, or fulfilment. The real task is ensuring that the return is worth more than what we're surrendering.

Hence, investing, and life at large, is not just about acquisition, it's about discernment. It's about understanding the enduring worth behind the immediate price tag.

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