To The Moon

The margin of safety principle refers to a concept popularized by renowned investor Benjamin Graham. It emphasizes the importance of investing with a sufficient margin of safety to protect against potential losses.

The margin of safety is the difference between the intrinsic value of a stock (what it's actually worth) and its market price. By purchasing a stock at a price significantly below its intrinsic value, investors can potentially minimize their downside risk.

This principle is based on the idea that markets can be unpredictable, and the future performance of a stock may not always align with expectations. By investing with a margin of safety, investors aim to account for uncertainties and create a cushion against unforeseen events or market downturns.

Essentially, the margin of safety principle encourages investors like us to focus on the fundamental value of a stock rather than relying solely on market trends or speculative factors. It promotes a conservative and cautious approach to investing, prioritizing the preservation of capital.