Price Is What You Pay Value

Buffett wrote this in his 2008 Berkshire Hathaway Chairman's Letter, in the midst of the global financial crisis. He explicitly credited Benjamin Graham as the source of the idea, writing: "Long ago, Ben Graham taught me that 'Price is what you pay; value is what you get.'" The letter was written against the backdrop of Buffett's well-known "Buy American" New York Times op-ed, in which he argued that emotionally driven sell-offs create the exact divergence between price and value that patient investors should exploit.