8. Price is what you pay, value is what you get

Overpaying for investments is a common mistake. The most recent examples of this phenomenon were the housing bubble in the run up to the financial crisis. Private investors often do not have access to the same range of data as institutional investors so they often get caught out on price. This is true across all assets including the income yield for property investments, equity valuation metrics like price-to-earnings, or bond yields. Warren Buffett says “price is what you pay, value is what you get”. Consider the intrinsic value of an investment before putting your hard earned capital at risk