Letters by Topic
Letters on Margin of Safety
The principle of buying securities only when their price is significantly below intrinsic value, providing protection against errors and market volatility.
1965·Early articulation of margin of safety as a protective principle
We seek to purchase securities only when they are trading significantly below their intrinsic value, creating a buffer against errors.
1977·Reinforcing the protective function of margin of safety
The margin of safety protects us from errors in our analysis and from adverse market conditions.
2007·Reaffirming margin of safety in the context of the credit crisis
Margin of safety will always be the cornerstone of value investing.
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Margin of Safety is one of the ideas behind the ValueOS tools. See it applied to real companies.