Implementing a margin of safety in investing from "summary" of Rule #1 by Phil Town
When it comes to investing, one of the most important principles to follow is implementing a margin of safety. This concept is all about protecting yourself from the risks that come with investing in the stock market. Essentially, it involves buying stocks at a price that is significantly lower than their intrinsic value. By doing this, you are essentially building a cushion for yourself in case the stock price drops unexpectedly. This margin of safety allows you to weather any storms that may come your way and still come out ahead in the long run. It is a way of protecting yourself from the volatility of the market and ensuring that you are not taking on unnecessary risks. So how do you go about implementing a margin of safety in your investing strategy? The key lies in doing your homework and thoroughly researching the companies you ...
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