How Much?
Is the one question tend to forget while buying stocks or mutual fund units by the common people. One must remember this question while buying a stock since higher the price you pay lesser will be the return in the long run and vice versa. One greatest piece of advice given by Ben Graham is Margin of Safety, which will help you not to overpay to any stocks or equity mutual fund units.
The very reason I emphasize on Margin of Safety is because of the current situation in the stock market. Stock market is becoming expensive day by day. Of course, we have seen economic recovery in major economic sectors but how sustainable it is a question mark.
From the history of the stock market, we could see almost all bull market had a disastrous end. Bull market ends when large number of ignorant people are participating in the market. Therefore, maintaining Margin of Safety is must and with the help of MOS we can get the advantage of even the worst bear market.
If someone who is investing or wants and do not aware of Margin of Safety, please learn about that or else learn from a person who helps you to know about Margin of Safety. And please ask yourself about the price you pay to stock before buying.
“Save, Invest, Spend and Be happy”
