We refer to the discount between a company’s stock price and our estimation of its intrinsic value as the Margin of Safety. We look for high-quality companies that we can buy when a substantial Margin of Safety exists. This margin allows for a higher degree of capital preservation for our clients – because we pay far less than what the company is worth.

Furthermore, investments purchased at a large enough discount hold the potential to provide significant investment returns as this gap or Margin of Safety closes.

For a full explanation of Margin of Safety, Click Here