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What happened to my Margin of Safety?
Investment Strategy | 2 Comments | Tue 16 Oct 2012
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When describing how we manage money, we value investors often use terms that slide effortlessly off the tongue. This article is a real life chronology of an investment which the author believed had a ‘margin of safety' embedded in his purchase price. The investment journey turned out to be far more complicated than envisaged. Luckily we can all learn a little from his experience.



Comments

1.
On 16/10/2012 23:56:21, Oliver Boyle wrote:
Thanks again guys, excellent resource. Reading this reminded me of a quote I picked up from Howards Marks although it is attributed to Yogi Berra, “In theory there is no difference between theory and practice. In practice there is.”

2.
On 19/10/2012 21:42:43, James East wrote:
Great write up the tribulations of a deep value investor. I have fortunately (call it paid in full experience) been thru several such episodes. It is either hard to pull the trigger to buy more and hard to sell out as the psychology gets in 'stuck' mode on these occasion. After a few rounds of such experience, one hopefully learns and either is willing to close the position as put it in the 'too hard pile', or load up. In other words, do not find yourself in the 'stuck place' -- easier said than executed though. Again, great write up. Side note: I have found that writing a "pre-mortem' versus a "post-mortem" helps in having direct action points.

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