Margin Of Safety (MOS) can be defined as a principle of investing when the market price is significantly below the estimation of the intrinsic value. This difference allows an investment to be made with minimal downside risk. The term was popularized by Benjamin Graham (known as “the father of value investing”) and his followers, most notably Warren Buffett.
“We don’t have to be smarter than the rest; we have to be more disciplined than the rest” – Warren Buffett
” The truth is that no one factor makes a company admirable. But if you were forced to pick the one that makes the most difference, you’d pick LEADERSHIP.” – Warren Buffet
The annual letter to the shareholders from Warren Buffett and Charlie Munger (published in Feb’19) is one of the things that the investment community watches out for — many things to learn therefrom. We have pulled out some excerpts and our takeaway on the same.
