This concept, borrowed from engineering and finance, involves building in a buffer to account for uncertainties. It helps us make conservative decisions and avoid catastrophic failures.
“Always leave room for error; the margin of safety is your buffer against the unknown.”
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Similar ideas to Margin of Safety
Things don’t always go as planned. You need to have a buffer between what we expect to happen and what could happen. That’s margin of safety.
Engineers build a bridge to sustain more than double its maximum capacity. Investors only choose business they understand so that they can calculate ...
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