Protect the downside. Worry about the margin of safety.
The most important attribute for success in value investing is patience, patience, and more patience. The majority of investors do not possess this characteristic.
The difference between the price we pay for a stock and its liquidation value gives us a margin of safety. This kind of investing is one of the most effective ways of achieving good long term results.
The share price must be less than book value. Preferably it will be less than net working capital less long term debt.
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