Price versus Value

More wisdom from Warren Buffet's latest annual letter to Berkshire Hathaway shareholders:

[T]he market value of the bonds and stocks that we continue to hold suffered a significant decline along with the general market. This does not bother Charlie [Munger] and me. Indeed, we enjoy such price declines if we have funds available to increase our positions. Long ago, Ben Graham taught me that “Price is what you pay; value is what you get.” Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.
[Emphasis added]

Perhaps the U.S. and British governments should take heed as they buy up so-called toxic assets. The cure may literally end up being worse than the disease.