Archive · 4 Oct 2026
Warren Buffett Quote Distinguishes Price From Value
Warren Buffett wrote, “Price is what you pay.
Value is what you get.”
He first used the line in a letter to his investment partners in 1966.
Price is the amount someone asks you to pay for something.
Value is what that thing is really worth to you.
The two amounts can be different.
The article says investors may find opportunities when a good company’s share price falls below its underlying value.
Buffett is known for investing for the long term.
The quote is: “Price is what you pay. Value is what you get.”
Warren Buffett first wrote the line in a January 20, 1966 letter to his investment partners.
Buffett is described as one of the most successful investors and a former chair of Berkshire Hathaway.
The article says Buffett favors buying wonderful companies at fair prices and holding them long term.
The quote distinguishes an asset’s purchase price from its underlying worth, which may create buying opportunities.
- Who
- Warren Buffett, an investor and former chair of Berkshire Hathaway.
- What
- A quote about the difference between what an asset costs and what it is worth.
- When
- Buffett first wrote the quote in a letter dated January 20, 1966.
- Where
- The letter was addressed to his investment partners; the article does not specify a location.
- Why
- The quote expresses the idea that an asset’s market price may differ from its underlying value.
- Quote
- “Price is what you pay. Value is what you get.”
- First written
- January 20, 1966
- Context
- A letter to Buffett’s investment partners
- Known as
- The Oracle of Omaha
- Former role
- Chair of Berkshire Hathaway
- Investment approach
- Buying wonderful companies at fair prices and holding them long term