A Quote by Daniel Bernoulli
The determination of the value of an item must not be based on its price, but rather on the utility it yields. The price of the item is dependent only on the thing itself and is equal for everyone; the utility, however, is dependent on the particular circumstances of the person making the estimate. Thus there is no doubt that a gain of one thousand ducats is more significant to a pauper than to a rich man though both gain the same amount.
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Economists tell us that the 'price' of an object and its 'value' have very little or nothing to do with one another. 'Value' is entirely subjective economic value, anyway while 'price' reflects whatever a buyer is willing to give up to get the object in question, and whatever the seller is willing to accept to give it up. Both are governed by the Law of Marginal Utility, which is actually a law of psychology, rather than economics. For government to attempt to dictate a 'fair price' betrays complete misunderstanding of the entire process.
In the financial markets, however, the connection between a marketable security and the underlying business is not as clear-cut. For investors in a marketable security the gain or loss associated with the various outcomes is not totally inherent in the underlying business; it also depends on the price paid, which is established by the marketplace. The view that risk is dependent on both the nature of investments and on their market price is very different from that described by beta.
The value of an item—in the mind of a consumer—is simply the difference between the anticipated price and the price on the tag.
The value of an item - in the mind of a consumer - is simply the difference between the anticipated price and the price on the tag.
Demonstrate to your customer the difference between price and cost. The price is what it takes to purchase the item. The cost is the amount the customer eventually pays. They are not the same.
Edge also implies what Ben Graham....called a margin of safety. You have a margin of safety when you buy an asset at a price that is substantially less than its value. As Graham noted, the margin of safety 'is available for absorbing the effect of miscalculations or worse than average luck.' ...Graham expands, "The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price."
O you who sold yourself for the sake of something that will cause you suffering and pain, and which will also lose its beauty, you sold the most precious item for the cheapest price, as if you neither knew the value of the goods nor the meanness of the prize. Wait until you come on the Day of Mutual Loss and Gain and you will discover the injustice of this contract.
The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.
When we have an experience -- hearing a particular sonata, making love with a particular person, watching the sun set from a particular window of a particular room -- on successive occasions, we quickly begin to adapt to it, and the experience yields less pleasure each time. Psychologists call this habituation, economists call it declining marginal utility, and the rest of us call it marriage
The point of equilibrium will be known by the criterion that an infinitely small amount of commodity exchanged in addition, at the same rate, will bring neither gain nor loss of utility.
Having the reality of God's presence is not dependent on our being in a particular circumstance or place, but is only dependent on our determination to keep the Lord before us continually.
It is folly to use as one's guide in the selection of fundamental science the criterion of utility. Not because (scientists)... despise utility. But because. .. useful outcomes are best identified after the making of discoveries, rather than before.
Any item in your wardrobe should satisfy one of two criteria: utility and joy.
Woman is born free and lives equal to man in her rights. Social distinctions can be based only on the common utility.
What is a labour victory? I maintain that it is a twofold thing. Workers must gain economic advantage, but they must also gain revolutionary spirit, in order to achieve a complete victory. For workers to gain a few cents more a day, a few minutes less a day, and go back to work with the same psychology, the same attitude toward society is to achieve a temporary gain and not a lasting victory.
Value in relation to price, not price alone, must determine your investment decisions. If you look to Mr Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor. If you insist on looking to Mr Market for investment guidance however, you are probably best advised to hire someone else to manage your money.
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