"Price is What You Pay; Value is What You Get"

By Mike Liss - July 20, 2018

It's one of my favorite quotes from Warren Buffett, the world's most famous value investor: "Price is what you pay; value is what you get."

I'm not sure that it can get any more succinct (or accurate) when it comes to the "growth versus value" conversation, but here's my take: growth obviously has beaten down value in recent years, and irrationally in my estimation. So many good companies are being disregarded in favor of tech—the FAANG stocks (Facebook, Apple, Amazon, Netflix and Google), especially. Sure, I can understand the appeal: you can't beat the feeling of investing in something that seems to keep going up, up and up. But when do the earnings on those names get completely divorced from actual valuations? I don't know the answer to that, but I believe that will happen.

That's just one of the topics I cover in my latest quarterly video. Click play to see what I have to say about trade wars, rising interest rates and inflation.

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    "Price is What You Pay; Value is What You Get"

    Growth has obviously beaten down value in recent years. But when do earnings get completely divorced from actual valuations?

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