WARREN BUFFETT

• 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

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...

The critical element in defensive investing is what Warren Buffett calls “margin of safety” or “margin for error.” 

Here’s a way to illustrate margin for error. You find something you think will be worth $100. If you buy it for $90, you have a good chance of gain, as well as a moderate chan...