Margin of Safety
The gap between conservatively estimated value and the price actually paid, demanded up front so a flawed appraisal or bad luck still returns your capital. It is a budget for being wrong, not a source of extra return. The discipline is refusing to pay more than a fraction of your own estimate, however attractive the story.
5 books · 7 people behind it · 4 resources
Start here
- The Intelligent InvestorBenjamin Graham, 1949
- Margin of SafetySeth A. Klarman, 1991
- Security AnalysisBenjamin Graham, David L. Dodd, 1934
The people behind it 7
Each person holds a book in this entry or names it in their own tags.
Investors 5
Benjamin Graham2 books hereMP
Mohnish Pabrai1 book hereMJ
Martin J. Whitmannamed in their tagsPL
Philip L. Carretnamed in their tags
Seth Klarmannamed in their tagsAcademics 1
Strategists 1
Resources 4
- Margin of Safety: Living With FailureShane Parrish · essay · Engineering and investing uses of the same buffer.
- The Forgotten Lessons of 2008Shane Parrish · essay · Seth Klarman's post-crisis list of what investors relearn and forget.
- The Indispensability of RiskHoward Marks · memo · You cannot earn a return without bearing the possibility of loss.
- The Three Sides of RiskMorgan Housel · essay · Odds, average consequence, and the tail that ends you.
Books 5
Benjamin Graham · 1949
Benjamin GrahamChristopher BloomstranFrancois RochonGuy SpierHoward MarksJean-Marie EveillardJoel GreenblattMohnish PabraiPeter CundillPrem WatsaRational Capital Investment FundSeth KlarmanWalter SchlossWarren BuffettAndrew LokenauthBill AckmanCharlie MungerDavid EinhornJamie DimonJason ZweigKevin RoseLi LuMichael BurryMichael WongPeter MalloukRyan PetersonThe Barefoot InvestorThe Rational Walk
T1 The Goal
Eliyahu M. Goldratt, Jeff Cox · 1984
