Margin of safety
Fundamental analysisThe discount between the price paid and the estimated intrinsic value.
In plain terms
Engineering tolerance for money. It exists because your estimate has error bars.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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The discount between the price paid and the estimated intrinsic value.
Engineering tolerance for money. It exists because your estimate has error bars.