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Price vs Value

written by on 2023-10-03

Warren Buffett famously said,

“Price is what you pay; value is what you get.”

Price and Value are NOT the same thing!

Value is subjective. It’s not determined by how much labor goes into a product, or how many resources.

Prices work differently. Buyers and sellers freely make decisions on a daily basis that help determine the prices of everything (in a free market).