What is Margin of Safety?
Margin of Safety — Buying an asset well below your estimate of its intrinsic value, so errors or bad luck still leave room to profit.
In simple terms
A big margin of safety cushions against being wrong on valuation.
Why Margin of Safety matters when you invest
Understanding margin of safety helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Margin of Safety — frequently asked questions
What is Margin of Safety?
Buying an asset well below your estimate of its intrinsic value, so errors or bad luck still leave room to profit.
What does Margin of Safety mean in the stock market?
Buying an asset well below your estimate of its intrinsic value, so errors or bad luck still leave room to profit. A big margin of safety cushions against being wrong on valuation.
Can you give an example of Margin of Safety?
A big margin of safety cushions against being wrong on valuation.
Put it into practice — open a free account.
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