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Use a margin of safety when investing from "summary" of The Intelligent Investor Rev Ed. by Benjamin Graham
The concept of a margin of safety is a crucial principle for investors to consider when making investment decisions. Essentially, it involves ensuring that the price paid for a security is significantly lower than its intrinsic value, in order to provide a buffer against potential losses. This margin of safety protects investors from unforeseen risks or uncertainties that may affect the value of their investment. By purchasing securities with a margin of safety, investors can increase the likelihood of achieving positive returns over the long term, even in the face of market fluctuations or economic downturns. This approach emphasizes the importance of conservative, cautious investing, rather than speculative or risky behavior. One of the key benefits of using a margin of safety is that it he...
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