Burgundy seeks out companies priced at least 30% below Burgundy’s estimation of the companies’ true worth.
Margin of Safety has two sides: opportunity for gains and a buffer against losses. When a company’s
share price is less than its true value, there exists a potential for investment gain – when the market recognizes
the company’s true value. A portfolio of companies with Margins of Safety works as a buffer against loss of capital
when market events turn.