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Margin of safety is crucial in investing from "summary" of The Intelligent Investor, Rev. Ed by Benjamin Graham
The core of value investing lies in the principle of margin of safety. This concept dictates that investors should only purchase a security when its market price is significantly lower than its intrinsic value. By doing so, investors create a cushion against potential losses, safeguarding their capital in times of market volatility or unforeseen events. A margin of safety provides a level of protection for investors, ensuring that even if their initial analysis or assumptions are proven incorrect, the likelihood of suffering a substantial loss ...
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