The correct choice for investors is obvious but requires a level of commitment most are unwilling to make.It is necessary instead to understand the rationale behind the rules in order to appreciate why they work when they do and don’t when they don’t.Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon.Avoiding where others go wrong is an important step in achieving investment success.It is easy to stray but a continuous effort to remain disciplined.Value investing, the strategy of investing in securities trading at an appreciable discount from underlying value, has a long history of delivering excellent investment results with very limited downside risk.Investors are frequently lured by the prospect of quick and easy gain and fall victim to the many fads of Wall Street. This summary includes key lessons and important passages from the book. My notes are informal and often contain quotes from the book as well as my own thoughts. This is my book summary of Margin of Safety by Seth Klarman. A margin of safety is necessary because valuation is an imprecise art, the future is unpredictable, and investors are human and make mistakes. The way to avoid loss is by investing with a significant margin of safety. Avoiding loss should be the primary goal of every investor.
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