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.
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.
admin8 Learnings from Warren Buffet’s 2018 Shareholder Letter