Margin of safety measures the risk by showing the gap between a stock's current price and its intrinsic value. Investors should seek a margin of safety of over 20% to minimize investment risks.

A margin of safety is the difference between a stock's market price and its intrinsic value, or the supposed "discount" a stock is trading at. Stocks fluctuate in price constantly, and longer-term ...

The concept of "margin of safety" - which originates from Benjamin Graham's earliest teachings - is a core tenet of value investing. As Graham wrote in the very last chapter of The Intelligent ...