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Price is what you pay, value is what you get from "summary" of The Intelligent Investor, Rev. Ed by Benjamin Graham
In the world of investing, it is crucial to understand the distinction between price and value. Price is simply what you pay for a particular investment, whether it is a stock, bond, or any other asset. On the other hand, value is what you actually receive in return for that price. In other words, price is the amount of money you hand over to purchase an investment, while value is the intrinsic worth of that investment. Many investors make the mistake of focusing solely on the price of an investment without considering its underlying value. They may be attracted to a stock because it is trading at a low price, assuming that they are getting a good deal. However, if the value of that stock does not align with the price, they may end up overpaying for an investment that is fundamentally weak. On the flip side, some investors may overlook high-priced investments assuming that they are too expens...Similar Posts
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