The bidding war

Price is one of the main things people look at when they do business.

The sellers set the price while the buyer perceives the value of the goods. The buyers enter the transaction if the "perceived value" exceeds the price.

The buyers are good at figuring out how much daily goods should cost, like coffee, soda, and grocery.

But it's harder to determine the price of things they don't buy daily, like real estate, business investments, and stocks.

There are two ways to identify the value of the goods we buy.

One, how well do we sleep at night after the transaction?

Or two, if the things generate cash, what is the total amount of cash generated, from now until we die, compared to the price at the moment - the higher, the better?

Benjamin Graham said this one of his investment literature, "Price is what you pay, but value is what you get."