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.
All these retailers these days are under pressure. Why? It's because... for the last 30 years, value equaled price. But now, value equals price, convenience, and a little bit of brand.
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.
To a value investor, investments come in three varieties: undervalued at one price, fairly valued at another price, and overvalued at still some higher price. The goal is to buy the first, avoid the second, and sell the third.
In stating the principles which regulate exchangeable value and price, we should carefully distinguish between those variations which belong to the commodity itself, and those which are occasioned by a variation in the medium in which value is estimated, or price expressed.
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.
Nothing of value is free. Even the breath of life is purchased at birth only through gasping effort and pain... The best things in life are beyond money; their price is agony and sweat and devotion... and the price demanded for the most precious of all things in life is life itself--ultimate cost for perfect value
Differentiate your products, provide great service and don't even think about trying to compete with Wal-Mart on Price.
For some reason people take their cues from price action rather than from values. Price is what you pay. Value is what you get.
If the only tool we use to analyse what's valuable is a price tag, then those things that don't have price tags begin to look like they have no value.
Value can mean a price. Value can mean exclusivity. Value can mean, 'I can't get it anywhere else, and this is really something I want.'
You need to understand the market, know how you can differentiate yourself in it, and grasp the price and the functional differentiation competitive points that are going to allow you to be disruptive.
I know the price of lettuce. You need to understand price and value. You buy the best lettuce you can at the best price you can.
There is value in education, but, as we do with anything else, we should start being careful to weigh that value with the price tag that's attached to it.
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."