The Important Differences Between Price and Value

One of Warren Buffett's most famous quotes (via Benjamin Graham) is, "Price is what you pay; value is what you get." It's an idea that largely guides his investment decisions and one that he has used to achieve an unparalleled level of success. What exactly does this quote mean, though, and how can we use it to guide our own investment decisions? To answer that, let's take a look at the important differences between price and value.