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Price is what you pay; value is what you get.

Read the full context and commentary for this Howard Marks quote, including the core idea, practical application, and why it still matters. Howard Marks is the co-founder and co-chairman of Oaktree Capital Management, a leading global investment firm known for expertise in distressed debt and value investing; he built his reputation through decades of market cycles, widely read investment memos, and a disciplined focus on risk, price, and investor psychology.

Howard Marks

Price is what you pay; value is what you get.

Source: Memos · Valuation · Investing

Core Idea

The core idea is that a securities worth depends on its underlying business reality, not its market quotation, so smart investing focuses on intrinsic value rather than current price.

Practical Application

Use this by researching businesses deeply, estimating their intrinsic value, and buying only when the market price is meaningfully lower than that value, regardless of hype or fear.

Why It Matters

It highlights that markets often misprice assets, so disciplined investors gain an edge by independently judging intrinsic value and acting when price deviates significantly from true worth.

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Frequently Asked Questions

Questions About This Quote

Who said this quote?

This quote is attributed to Howard Marks.

What is the main lesson of this quote?

The core idea is that a securities worth depends on its underlying business reality, not its market quotation, so smart investing focuses on intrinsic value rather than current price.

How can readers apply this idea?

Use this by researching businesses deeply, estimating their intrinsic value, and buying only when the market price is meaningfully lower than that value, regardless of hype or fear.

Where can I read more?

Use the linked author and category pages to continue exploring related ideas.