Hexun Investment Advisor Li Ying: Safety Margin

The single most core iron rule of value investing you must see: the margin of safety. Many people have learned about value investing, but they only remember Benjamin Graham’s margin of safety while forgetting the most critical point. The margin of safety is never a one-size-fits-all template. The broader market has a floor for undervaluation; sectors have their own rotation rhythm; and individual stocks have event-driven catalysts. You need standards that belong to you—when you can buy.

When you must decisively not touch it: how much floating loss should trigger a stop-loss, and how much profit should be realized and taken off the table—this is your margin of safety. Don’t envy others for catching big bull runs, and don’t be anxious about missing out. What you compete on in investing is not occasional explosive gains, but a long-term, stable trading system. Deeply etch your margin of safety into your bones, strictly execute every trade without crossing the line, don’t act impulsively or blindly follow others, and keep your margin of safety as defined by your understanding. Follow the iron-clad standards of trading. Walk slowly, steadily—don’t rush, don’t get impatient—then you can go farther, and go with greater confidence. Finally, to summarize and invite applause: today’s investment money has its own standard for a margin of safety. Trade according to your own standards. If you feel there’s merit to this, you can share it with your friends who trade stocks. In the next video, Stock Chairman will continue sharing Stock Chairman’s investment sayings.

(Editor: Zhang Yang HN080）

     【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. Hexun website maintains a neutral position regarding the statements and opinion judgments in the article, and does not provide any express or implied guarantee regarding the accuracy, reliability, or completeness of the content included. Readers are requested to use this only as reference and bear all responsibility themselves. Email：news_center@staff.hexun.com