margin of safety (Meaning)

Wordnet

margin of safety (n)

the margin required in order to insure safety

Synonyms & Antonyms of margin of safety

No Synonyms and anytonyms found

margin of safety Sentence Examples

  1. The margin of safety is a vital concept in finance, representing the difference between an asset's presumed value and its actual market value.
  2. Maintaining an adequate margin of safety allows investors to mitigate potential losses and protect their capital.
  3. Companies with a high margin of safety are better equipped to withstand economic downturns and unforeseen events.
  4. Investors should strive to invest in companies with a conservative margin of safety to minimize risk and maximize returns.
  5. The margin of safety should be considered in conjunction with other financial metrics to provide a comprehensive assessment of an investment's viability.
  6. Prudent investors employ a margin of safety to buffer against potential price declines and protect their profits.
  7. A high margin of safety provides investors with peace of mind and reduces financial stress during market volatility.
  8. The margin of safety is a crucial indicator for managing risk and preserving capital in the face of uncertainty.
  9. Investors should be vigilant in monitoring the margin of safety of their investments to ensure they remain within acceptable risk parameters.
  10. By incorporating a margin of safety into their investment strategy, individuals can enhance their chances of achieving their financial goals.

FAQs About the word margin of safety

the margin required in order to insure safety

No synonyms found.

No antonyms found.

The margin of safety is a vital concept in finance, representing the difference between an asset's presumed value and its actual market value.

Maintaining an adequate margin of safety allows investors to mitigate potential losses and protect their capital.

Companies with a high margin of safety are better equipped to withstand economic downturns and unforeseen events.

Investors should strive to invest in companies with a conservative margin of safety to minimize risk and maximize returns.