Seth Klarman's Margin of Safety

Seth Klarman's "Margin of Safety" is an investment principle that emphasizes buying assets at prices significantly lower than their intrinsic value. This approach provides a buffer against errors in analysis or market volatility, reducing the risk of losses. Essentially, it’s about investing with caution: ensuring that the potential reward outweighs the potential risk. By focusing on assets that are undervalued, investors can protect themselves from unforeseen market downturns while also positioning themselves for long-term gains. This strategy encourages thorough research and disciplined decision-making in investment practices.