Price is what you pay. Value is what you get. – Warren Buffett
After yesterday’s ‘Location. Location. Location.’ post, I didn’t think I would find such a memorable real estate quote, or at least not as quickly.
What I believe Mr. Buffett is saying here is that what you value, you will spend money one. This can be seen by how much the market varies and that in spite of this, many different types of property sell every day. While you may look down upon the idea of living in a mini-home in a trailer park, other buyers may see that mini-home as a huge improvement for them and maybe even their ‘dream home’.
Value dictates worth. And the price, as Mr. Buffett eloquently states, is what you pay for the value you get.
What do you think?
Warren Edward Buffett (/ˈbʌfɪt/; born August 30, 1930) is an American business magnate, investor, speaker and philanthropist who serves as the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of US$84 billion as of June 3, 2018, making him the third wealthiest person in the world.
Buffett was born in Omaha, Nebraska. He developed an interest in business and investing in his youth, eventually entering the Wharton School of the University of Pennsylvania in 1947 before transferring and graduating from University of Nebraska at the age of 19. He went on to graduate from Columbia Business School, where he molded his investment philosophy around the concept of value investing that was pioneered by Benjamin Graham. He attended New York Institute of Finance to focus his economics background and soon after began various business partnerships, including one with Graham. He created the Buffett Partnership after meeting Charlie Munger, and his firm eventually acquired a textile manufacturing firm called Berkshire Hathaway and assumed its name to create a diversified holding company.