Price is what you pay, value is what you get

In the world of money, these two terms are often confused. People look at the price tag and automatically assume that it reflects the real value of a thing. History, however, teaches us that this is not the case. Price can be the result of current market mood, speculation, or a bubble. Value, on the other hand, is something long-lasting and tangible.

Benjamin Graham, Warren Buffett’s mentor and the father of intelligent investing, summed it up in a sentence that became legendary: “Price is what you pay. Value is what you get.”

At BizPartner Group, we didn’t adopt this rule just as a nice idea. It is the mathematical foundation of every single deal we make. Understanding the difference between price and value is what separates gambling from real investing.

How does this principle work in our business?

Our job is to provide capital. We help clients in various life and business situations – whether they need quick resources to grow their company, renovate real estate, or buy a new home.

For every deal, we strictly follow Graham’s philosophy:

1. Price (What we pay):
   When we provide financing to a client, that is the “price” we pay. This amount represents our cost and your investment. The key is that this amount is always set conservatively. We never provide financing at the full market price of the property.

2. Value (What we receive):
   Against the funds provided, there always stands a real property – a house, apartment, or land – that we take as collateral. Its market value is higher than the amount we provided. That is the “value” we hold as protection.

Simply put: The price we paid is lower than the value we hold in our hands.

Why is this important for you as an investor?

Most common investments work on the principle of hope – you buy a stock for 100 euros and hope its price goes up to 110. At BizPartner Group, we don’t rely on hope but on certainty in the form of a so-called safety cushion.

This cushion is created precisely by the difference between the amount provided (price) and the real value of the property.

• Protection against market decline: Even if real estate prices drop temporarily, thanks to our reserve, your investment remains fully secured.
• Tangible assets: Your money is not just numbers in a bank system. It is backed by real “bricks” and land that have intrinsic value regardless of the economic situation.

Many people make the mistake of being drawn to the vision of quick profit in assets that have no real value. We go the opposite way.

At BizPartner Group, we do not speculate on what might have value tomorrow. We focus on what has demonstrable value today. We provide capital only where the value of the collateral is clearly higher than the cost of the investment.

If you are looking for a safe harbor for your savings where returns are not determined by chance but by real assets, you are in the right place. Because as Graham said – what matters is what you actually get for your money.

Are you interested in how we grow capital based on the principles of value investing?

Check out our current investment opportunities at www.bizpartnergroup.com.