Blog

Price is What You Pay. Value is What You Get.

We can apply that to investing and the markets, but it also applies to your wealth experience with management.

November 28, 2024

Warren Buffett, the Oracle of Omaha, famously said, “Price is what you pay. Value is what you get.”

What does he mean by that?

We can apply that to investing and the markets, the usual story of buying low and selling high. But it also applies to your experience with your money when it comes to wealth management.

Commoditized offerings effectively have the lowest possible price point, a level that is at or near zero.

Unique differentiated value propositions offer the most to consumers and are generally offered at fair market value.

It’s a principle in economics, when a product or service is commoditized, the fees grind closer and closer to zero and as low as possible.

There is no difference between one offering and the next, so consumers effectively choose the option with the lowest price, driving prices lower and lower until they get near zero. Competition keeps driving prices as low as possible.

So what is a unique and highly differentiated value proposition?

It’s something that stands out, it’s different from everything else and it not only adds but also creates value for the consumer.

A high-calibre offering is a unique and differentiated value proposition. Not only does it compete, but it stands out, going above and beyond in terms of quality and value.

It’s a higher quality and higher order; like comparing an old flip phone to an iPhone 16.

High-quality products and services have high value.

I would look at the quality of your portfolio strategy and investments. The quality of your return profile, but more importantly the quality of your risk management plan.

The quality of your wealth management, financial planning, and family office services.

And most importantly, the quality and calibre of the advisor. The relationship with your advisor, the leadership they provide, and the creativity they apply to your financial picture create unique differentiated value for you, your family, and your money.

There are some things in life that make sense to cut costs and save money on. 

You cut costs on things that are not important or not valuable to you.

Your retirement and your financial future, freedom, and independence are too important and valuable to cut costs.

You get what you pay for.

Warren Buffett said it best, “Price is what you pay. Value is what you get.”

So what is Aretec’s unique and highly differentiated value proposition?

For starters, Aretec is a wealth management firm for Canadian families who don’t want a “good enough” experience with their money, but an experience that’s the best it can possibly be.

This applies to our investment portfolios, our wealth management services, and our advisors.

We want you to be wealthy in terms of your portfolio, money, and net worth.

We also want you to feel wealthy in the sense that you have peace of mind, freedom from worry, good health, time with family and friends, and the ability to enjoy your retirement and live the good life.

Get in touch to learn more about our unique value proposition.

Get in touch to Realize Your Wealth™.

Best,

Will Simpson

President, Aretec Wealth