Entity Dossier
Organization
Margin of Safety
Strategic Concepts & Mechanics
Risk DoctrineConsistently Not Stupid Beats BrilliantSignature MoveIntrinsic Value Through Cash Flow Not MomentumSignature MoveStock as Business Ownership Not Ticker SymbolCornerstone MoveMr. Market as Servant Not MasterStrategic PatternFree Cash Flow as Valuation BedrockOperating PrincipleBottom-Up Only ValuationSignature MoveIndependent Thought Over Herd RegressionOperating PrincipleSimplicity as Performance AdvantageCornerstone MoveBuy at One-Third of Sellout Value Then WaitSignature MoveShort-Term Predictions in the Too-Hard PileCornerstone MoveMargin of Safety Renders Prediction UnnecessaryDecision FrameworkChecklist Before CommitmentDecision FrameworkPrice Versus Value DisciplineRisk DoctrineProjections as Dressed-Up Delusion
Primary Evidence
"A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human error, bad luck, or extreme volatility in a complex, unpredictable and rapidly changing world. —SETH KLARMAN, MARGIN OF SAFETY, 1991"
Source:Charlie Munger