“Price is what you pay; value is what you get.”
— Warren Buffett, Berkshire Hathaway shareholder letter (2008), crediting his teacher Benjamin Graham
हिंदी: “कीमत वह है जो आप चुकाते हैं; मूल्य वह है जो आपको मिलता है।”
What this quote means
We often judge things only by their price tag — “it’s cheap, grab it” or “it’s expensive, so it must be good.” Buffett reminds us that price and benefit are two different things. Price is the number printed on the label; value is what that thing actually adds to your life, and for how long. A wise buyer asks one question before paying: “What will I really get from this?”
A real-life example
A parent in Jalna bought ₹300 school shoes for his son. They tore within two months, so he bought them again, and again — ₹1,800 gone in a year. His neighbour paid ₹900 for one sturdy pair that lasted the whole year. The neighbour paid the higher price but got far more value. The same applies to phone plans, coaching classes, books and even crop seeds. The reverse is also true: an expensive brand does not always give more value — sometimes we are only paying for the name.
To build the habit of watching small spending too, read our earlier quote: Small Leaks Sink Big Ships.
What to do today
- Before your next purchase, write down: how long will this last, and how often will I use it?
- Recall three things you bought last month — which ones were truly worth the money, and which were not?
- Ask your children: “What is the difference between cheap and worth it?” and talk through one example together.
FAQ
Q1: Who said this?
Investor Warren Buffett wrote it in his 2008 letter to Berkshire Hathaway shareholders, saying he learned it long ago from Benjamin Graham.
Q2: Does it mean we should always buy the expensive option?
No. It means weighing usefulness, durability and real need alongside the price. Very often, the cheaper option gives the best value.
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