Showing posts with the label margin of safety

What is your Margin of Safety - Personal Finance Lessons

What is your Margin of Safety - Personal Finance Lessons  The so-called 'Margin of Safety' is not  limited to stocks traded on the Stock Exchange. We need Safety and precautionary measures in the events we encounter on a regular day basis. As we approach Health and Economic issues, the question arises as to whether we have done this before. We have been hearing lines like 'Small drops make an Ocean', 'Prevention is better than Cure' for a long time. But in realty and practice, we fail to implement it and then get into trouble. Examine for yourself what your current status in the Following questions... If you or someone in your family has an unexpected Health or Financial problem, what is your immediate solution you have to overcome it ? If you are experiencing loss of a Job, what is your next Plan you have ? What is your Emergency Fund ? What is your 'All Time Prevention mode' Strategy ?  We have been saving in a single instrument for a long time and con

Take a step to Risk (Risk and Safety Margin)

Take a step to Risk (Risk and Safety  Margin) For many people, Risk refers to like eating a ‘Rusk’.  But, it is not a eatable item. Then, how many of us are like to take the ‘Risk’ ? Risk – Exposure to Danger or Hazard In Financial(Investment) terms, Risk is a deviation between the actual and the expected returns . Risk has two faces, as it have Positive and Negative. Without any risk, the investment of money can gives the return of ‘Null’ or a little bit like positive. If we dare to act, then we get better Profits (Positive) and Losses(Negative) in many cases J  This is the case for so many of us, not willing to take risk or take risk without aware. Is it good, for not taking Risk ?   Is really, Risk less investments are protecting our wealth /Future Daily expenses ?   Absolutely not ! Then, how we at Risk ? Getting down in the river without knowing how to swim or Not aware about the depth of the river even   Swimming.   Riding rude in National Highways or not knowing how to ta