Capitalist Letters

Capitalist Letters

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Capitalist Letters
The Power of Margin of Safety

The Power of Margin of Safety

On one of the central concepts of investing that provides significant legroom to investors at turbulent times and secures us from unexpected and groundless losses.

Oguz Erkan's avatar
Oguz Erkan
Jul 16, 2023
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Capitalist Letters
Capitalist Letters
The Power of Margin of Safety
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On the Edge of a Cliff

Yes, this is how you should see it, like you are on the edge of a cliff. But in investing you can never know this. If it was possible to know when you are at the edge of a cliff, everybody would step back. No, internalizing the principle of margin of safety begins with assuming you may be at the edge of a cliff. Think it like this,…

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