Bill Miller - Price vs. Value

Legendary value investor Bill Miller is the portfolio manager of the Legg Mason Value Trust Mutual Fund (LMVTX)..a fund that beat the annual returns of the S+p 500 for 15 years in a ROW from 1991 through 2005! Observe his concise yet effective take on the difference between an asset's PRICE and its VALUE:

"...The price of a publicly traded security is one thing, and its value is something else. Price is a function of short-term supply and demand characteristics, which are heavily influenced by the most recent news and results. Value is the present value of the future cash flows of the business, and that is what we focus on."