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The plain and simple mantra is: Buy a stock at discount to its intrinsic value. This gives you a 20-25% margin of safety. Wait for the price to fall to let’s say Rs 7.5 or Rs 8 whatever and then BUY. Similarly, if you’re long on a stock and you value it at Rs 10 a piece, and current market price is exactly Rs 10. Market”).So this 15 Minute is your margin of safety. Let us say: You are readying up for an important meeting at 9:00 AM and usually you leave for the office at 8:00AM.But today you decide to leave for the office at 7:45 AM, because you don’t know the traffic (“Mr. Margin of safety is not a hard-core finance concept it is more relevant in day to day life also. Market for investment guidance, however, you are probably best advised to hire someone else to manage your money.” Market as a creator of investment opportunities, you have the makings of a value investor.” In his book-“Margin of safety” Seth Klarman have written it quite spectacularly: Market, we should understand which side we are in. Investors are human and do make mistakesįirst thing first: Before we get ready for the battle with Mr.Value investors seek a margin of safety, allowing room for imprecision, bad luck, or analytical error in order to avoid sizable losses over time. Let us explore why the ‘Aristotle’ of wealth creation world advocates so? Why it is important?

Market or against him he should have margin of safety. It does not matter an investor is going with Mr. Margin of safety are the three golden words which counts in the ultimate battle of investment.

This margin of safety is the tool to build the arc for bad weather like Noah. So what becomes very important is – not to predict the market however to be ready for it. – Ben GrahamĪs it is impossible for a common man to predict the market movement as there is only one Nostradamus we know of. Confronted with a like challenge to distil the secret of sound investment into three words, we venture the motto, Margin of Safety”. €œIn the old legend the wise men finally boiled down the history of mortal affairs into the single phrase, ‘This too will pass’.