Value, Margin Of Safety, And The Art Of Doing Nothing
Throughout market history, investors repeatedly abandon the principles of value investing and maintaining a "margin of safety" during periods of exuberance. Ultimately, those investors paid a dear price for their speculation.In a market that is overvalued on many metrics, finding value becomes difficult. Furthermore, holding value when it is underperforming the "hot stocks" in the market is even more challenging.When investing, we seek to deploy capital in an operation with potential to deliver a high return on that investment. Therefore, logically, if no such opportunity with the required "margin of safety" exists, then the best operation is to "do nothing."
Seekingalpha · 1d ago