"Value is what you get"
About this Quote
Warren Buffett draws a sharp line between the sticker on something and the substance you actually receive. Price is a number on a tag; value is the durable stream of benefits that follows. In investing, that stream might be cash flows, growth prospects, resilience through cycles, and the quality of management. In life, it can be time saved, skills gained, peace of mind, or joy. The guiding question is not What did I pay? but What do I get, for how long, and with what certainty?
The idea comes from value investing, where Buffett, building on Benjamin Graham, looks past market quotes to intrinsic value: the present value of the cash a business can generate over time, adjusted for competitive moats and execution. Markets often swing between fear and greed, mispricing those fundamentals. Focusing on value disciplines you to seek a margin of safety, buying when the durable benefits exceed the risks at the price offered. It also explains why he favors great businesses at fair prices over fair businesses at great prices. What you get from a strong brand, recurring revenues, and loyal customers compounds; what you get from a weak franchise erodes.
The principle generalizes. A cheap tool that fails quickly delivers little value, while a more expensive one that lasts and performs well may be the better deal. A job that pays slightly less but offers steep learning and mentorship can yield greater lifetime value than a higher immediate salary with stagnant growth. Even in daily choices, from software subscriptions to education, the calculus hinges on benefits versus total cost, including time, risk, and opportunity costs.
By anchoring decisions to what you actually get over time rather than what you hand over today, you align with compounding, durability, and outcomes. Price is fleeting and external; value is lasting and earned. The discipline is to measure by the latter.
The idea comes from value investing, where Buffett, building on Benjamin Graham, looks past market quotes to intrinsic value: the present value of the cash a business can generate over time, adjusted for competitive moats and execution. Markets often swing between fear and greed, mispricing those fundamentals. Focusing on value disciplines you to seek a margin of safety, buying when the durable benefits exceed the risks at the price offered. It also explains why he favors great businesses at fair prices over fair businesses at great prices. What you get from a strong brand, recurring revenues, and loyal customers compounds; what you get from a weak franchise erodes.
The principle generalizes. A cheap tool that fails quickly delivers little value, while a more expensive one that lasts and performs well may be the better deal. A job that pays slightly less but offers steep learning and mentorship can yield greater lifetime value than a higher immediate salary with stagnant growth. Even in daily choices, from software subscriptions to education, the calculus hinges on benefits versus total cost, including time, risk, and opportunity costs.
By anchoring decisions to what you actually get over time rather than what you hand over today, you align with compounding, durability, and outcomes. Price is fleeting and external; value is lasting and earned. The discipline is to measure by the latter.
Quote Details
| Topic | Investment |
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