What is Margin of Safety?

✅It is simply discounts or on sales! A stock with Margin of Safety 20% is a stock with 20% discount!

It is a principle of investing in which an investor only purchases stocks when their market price is significantly below their intrinsic value.

The price difference between market price and intrinsic value is the Margin of Safety.

📈Setting a Margin of Safety for example, 20%, allows an investment to be made with minimal downside risk.

⚠️Investors should be mindful of the Margin of Safety and the intrinsic value of a stock before investing in any stock!

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