And for me, the Holy Grail of a strong…

And for me, the Holy Grail of a strong fundamental value investment philosophy is an intrinsic value arbitrage. Howard Marks and other value investors call it the margin of safety. Investing in things that are non-obvious, which means they are likely less competitive, at an attractive margin of safety in partnership with management teams and owners you believe in-if you do that while building a diversified portfolio of opportunities with these attributes, you will outperform the market because of that margin of safety and because of the performance of the people you've backed.

— from Leadership & Business (Leadership/Business) · Holy Grail of Investing: The World's Greatest Investors Reveal Their Ultimate Strategies f

In the book

Don't lose money — assess the real risk of every opportunity before you reach for the reward. Find the margin of safety: the gap between a thing's intrinsic value and its price, in something non-obvious, alongside people you believe in. Respect cycles, because where you are in the cycle when you buy matters enormously, and market tops are easy to spot if you're honest — everyone is overconfident, leverage is everywhere, and a crowd of people are suddenly getting rich. […] Know your indispensable, scalable parts. Find the chef-versus-ingredients answer before you try to grow. Invest with a margin of safety, and never for the line you won't cross. Don't lose money; respect cycles; approach every deal humbly; keep your ethics spotless. Back the right people and support them. That, more than any deal, is where the real return lives. — Leadership & Business (Leadership/Business)

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