Posted inWealth

Quotes about planning principles

The purpose of the margin of safety is to make an estimate of the future unnecessary - Benjamin Graham
It means you build in such a large buffer of safety when you invest that you're insulated from being wrong. You don't have to predict the future perfectly because your downside is already protected.
The function of the margin of safety is Meaning Factcheck Usage
Posted inWealth

Quotes about risk

The function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future - Benjamin Graham
At its heart, this quote means you don't need a crystal ball to invest successfully. The margin of safety acts as a buffer that protects you from your own inevitable forecasting errors and the market's unpredictability.