Knowledge Base

Margin of Safety (MoS)

MoS = Intrinsic Value − Current Market Price

MoS is the "room for error" in value investing — buying below what it's worth.

Benjamin Graham (Buffett's mentor) considered MoS the most important concept in investing.

A 30% MoS means you buy a ₹100 stock for ₹70. Even if your analysis is slightly wrong, you're safe.

MoS protects you against market downturns and psychological errors in valuation.

Growth stocks often have slim MoS; Value stocks typically have higher MoS.

Pro Tip

The bigger the MoS, the higher the potential return and the lower the risk. Never buy at "Fair Value" — wait for the MoS.

Margin of Safety (MoS) - Complete Guide

Everything you need to know about Margin of Safety (MoS) and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

MoS = Intrinsic Value − Current Market Price

Key Concepts & Rules

MoS is the "room for error" in value investing — buying below what it's worth.

Benjamin Graham (Buffett's mentor) considered MoS the most important concept in investing.

A 30% MoS means you buy a ₹100 stock for ₹70. Even if your analysis is slightly wrong, you're safe.

MoS protects you against market downturns and psychological errors in valuation.

Growth stocks often have slim MoS; Value stocks typically have higher MoS.

Expert Strategy

The bigger the MoS, the higher the potential return and the lower the risk. Never buy at "Fair Value" — wait for the MoS.

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