Quote of the Day by Warren Buffett: 'Price is what you pay. Value is what you get'

“Price is what you pay. Value is what you get,” said Warren Buffett.

Buffett famously noted that whether buying socks or stocks, he prefers quality merchandise when it is marked down below its true worth.

Who is Warren Buffett  

Known as the "Oracle of Omaha," Warren Buffett is one of the most successful investors of all time. Buffett formerly chaired Berkshire Hathaway.

He also stood out for his long-term investment philosophy, often summarised by his preference for buying “wonderful companies at fair prices” and holding them indefinitely.

Buffett’s influence went well beyond returns. He championed the idea that immense wealth comes with a responsibility to give back, something he practised through his philanthropy and the Giving Pledge.

When was this quote said by Warren Buffett?  

Warren Buffett first wrote this line in his January 20, 1966 letter to his investment partners.

What does this quote mean?

In a single paragraph, this quote means that the market price of an asset does not always reflect its true, underlying worth. Price is the objective, emotional, and temporary number you pay to buy something based on current market supply and demand.

True value investors look for moments when the stock market panics and drops the price of a great company far below its actual value, creating a rare buying opportunity where you pay very little for a highly productive asset.