BUY WITH A MARGIN OF SAFETY

Nearly every professional investor began hiscareerreading Benjamin Graham's,The Intelligent Investor. Warren Buffett called it, "by far, the best book on investing ever written." What makes it so special? One of the reasons is because it introduced the important concept “Margin of Safety.”

In investing, a margin of safety is formed when one buys an investment at less than its value, while using conservative assumptions. The idea of a margin of safety is that you want to buy a business at a price that is low enough that your assessment could be completely wrong and you wouldn't lose much