Learn more about moneyandinvestments with this collection
Identifying and eliminating unnecessary expenses
How to negotiate better deals
Understanding the importance of saving
“The three most important words in investing are margin of safety”
WARREN BUFFETT
23
259 reads
MORE IDEAS ON THIS
What is Margin of Safety?
‘Margin of safety’ is the difference between a stock price and its intrinsic worth, or value.
So if a stock is trading at $70 in the market, and you calculate the company’s intrinsic value as $100, you have a margin of safety of $30 (100 minus 70). In other terms, the sto...
23
282 reads
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”
WARREN BUFFETT
21
306 reads
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IDEAS CURATED BY
Take note of these great quotes by Warren Buffett on Investing!
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Related collections
Other curated ideas on this topic:
Passive Investing
- To ensure the highest margin of safety, choose an investment that gives consistent returns.
- The most conservative investor will avoid short-term market volatility by investing in assets over the
Margin of Safety
This is a principle of investing wherein an investor purchases securities only when their market price is significantly below their intrinsic value.
The formula to determine the intrinsic value of something is:
Margin of Safety = Market Cap / Deep Value Barg...
What is Margin of Safety?
‘Margin of safety’ is the difference between a stock price and its intrinsic worth, or value.
So if a stock is trading at $70 in the market, and you calculate the company’s intrinsic value as $100, you have a margin of safety of $30 (100 minus 70). In other terms, the sto...
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