Margin of Safety
Seth Klarman
Presents a conservative value investing mindset focused on permanent capital loss, buying below value, and discipline in euphoric markets.
Case studies
Case 1
When applying Margin of Safety, choose a real decision and test whether you can estimate value instead of forecasting short-term price. Record evidence, action, and outcome to avoid hindsight rationalization.
Case 2
When applying Margin of Safety, choose a real decision and test whether you can demand a margin of safety. Record evidence, action, and outcome to avoid hindsight rationalization.
Case 3
When applying Margin of Safety, choose a real decision and test whether you can prioritize avoiding permanent loss. Record evidence, action, and outcome to avoid hindsight rationalization.
Case 4
When applying Margin of Safety, choose a real decision and test whether you can wait for price and quality to align. Record evidence, action, and outcome to avoid hindsight rationalization.