Investing & Markets

Own assets that compound

Novice

Mastery0%

Novice

Note. Education, not financial advice. Past performance doesn't guarantee future returns. For real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 09 of 21

framework

Margin of safety

Pay less than the thing is worth, so being a bit wrong still doesn't ruin you.

Definition

Buying an asset at a price comfortably below your honest estimate of its underlying value, so being wrong still leaves you whole.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.