Value Investing

Margin of Safety

The core principle of value investing. Ensure you are buying an asset at a significant discount to its true intrinsic value to minimize downside risk.

Asset Valuation

The calculated "true" worth (e.g., via DCF).

The price the stock is currently trading at.

Safety Buffer

Margin of Safety

33.3%

Good Margin (Undervalued)

Value investors like Benjamin Graham suggest a minimum margin of safety of 30%.