Investing Tip #81: Use Graham’s “Margin of Safety”
July 20, 2014 at 03:05 AM EDT
Success of value investing largely depends on the correct estimation of the intrinsic value of the stock. Graham’s margin of safety, the difference between a stock’s price and its intrinsic value, provides you cushion against estimation errors. The farther the purchase price is below its intrinsic value, the greater the margin of safety against future [...] The post Investing Tip #81: Use Graham’s “Margin of Safety” appeared first on The College Investor .